Business

1 Bonus Share For Every Share, Announces Ambani After Annual Meet

न्यूज़ वर्ल्ड इंडिया | 0
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| July 21 , 2017 , 21:46 IST

In an action-packed Annual General Meeting of Reliance Industries Limited on Friday, its Chairman and Managing Director Mukesh Ambani announced bonus shares on every share for the company's shareholders.

The company recommended issue of bonus shares by "capitalisation of its reserves in the ratio of 1 bonus equity share of Rs. 10 each fully paid-up for every 1 existing equity share of Rs 10 each fully paid-up (that is in the ratio of 1:1)," it said in a regulatory filing.

Charting out the long journey of the RIL since it was founded by his father Dhirubhai Ambani in 1977, Ambani said its net profit index had jumped 10,000 times during the last 40 years.

Describing how from its beginning as a textiles start-up, RIL has now created "multiple growth engines", he told shareholders at the 40th AGM here that the company's "net profit went from Rs 3 crore to Rs 30,000 crore" during the period.

"RIL's market capitalisation has grown from Rs 10 crore in 1977, to over Rs 5 lakh crore now, at a compound annual growth rate of 32 per cent," he said.

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Ambani dedicated the 40 years to the founder Chairman and his father, Dhirubhai Ambani.

In an emotional speech, he said: "For the first 25 years, I sat by the side of my father, who tutored me with boundless affection, attention and hope. I can feel as if he is sitting here, smiling and talking to me and to all of you. I hear him telling me... Now, you are in my place. You have the responsibility to protect Reliance and promote the interests of all its shareowners, partners and employees. I am confident that you will take Reliance to a greater height."

Before ending his speech, he said: "Dhirubhai lives in our hearts for eternity. Let us welcome Dhirubhai again to this AGM." RIL stocks were trading at Rs 1573 per share, up 2.90 per cent on the Bombay Stock Exchange at 1.18 pm.

The company also announced the launch of a zero cost 'intelligent smartphone'. Ambani said, “The JioPhone will be available to all Indians for an effective price of Rs zero.” The JioPhone will be available for beta testing from August 15.

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