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Reliance Industries Limited (RIL), owned by Mukesh Ambani, has been making headlines recently due to its announced 1:1 bonus issue. This move, unveiled during the company's Annual General Meeting (AGM) on August 29, 2024, promised to double the number of shares held by existing investors. Following the AGM, RIL's board met to formally confirm and approve the bonus issue. The company then proceeded to secure shareholder approval through a postal ballot, ensuring widespread support for this significant financial decision.
However, despite the enthusiasm surrounding the bonus issue, one crucial detail remains elusive - the ex-date. This date is of paramount importance for investors as it determines the last trading day when existing shareholders can purchase shares to be eligible for the bonus issue. While many expected RIL to announce the ex-date during its board meeting on October 14, 2024, a meeting coinciding with the release of its second-quarter earnings, the company remained silent on this key aspect. The delay in announcing the ex-date has left investors in a state of uncertainty, eager for clarity on their participation in the bonus issue.
The lack of a concrete timeline for the ex-date announcement raises questions about the company's strategy. While RIL has not publicly commented on the reason for the delay, speculation abounds. Some suggest that the company may be waiting for a favorable market condition to maximize the impact of the bonus issue on its share price. Others believe that logistical considerations related to the massive scale of the bonus issue might be contributing to the delay. Regardless of the reason, the continued postponement has created a sense of anticipation and, for some, even frustration among investors, highlighting the importance of clear communication and transparency in such significant corporate actions.
Source: Why Reliance Industries Did Not Announce Ex-Date For Its 1:1 Bonus