RIL Announces Bonus Share In 1:1
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RIL announces bonus share in 1:1

 
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In a Diwali gift for its shareholders, the Reliance Industries (RIL) board today recommended one bonus share for every share held and a dividend of Rs 13 a share.

The last time India's largest private sector company gave bonus shares to its shareholders was 12 years ago. This year, 39 companies have announced bonus shares so far. Before RIL, state-owned Indian Oil Corporation had announced a 1:1 bonus issue last month.

The dividend will result in a payment of Rs 2,219 crore, inclusive of taxes of Rs 322 crore. Both the bonus shares and dividend will accrue to the shareholders of Reliance Petroleum (RPL), which has been amalgamated recently with the company. Reliance shares fell 1.57 per cent to Rs 2,099 on the Bombay Stock Excha nge, declining for the fourth straight day. The free-share announcement was made after the stock markets closed.

"The proposal for bonus and dividend continues Reliance's tradition of rewarding shareholders on a sustained basis," a company statement said.

RIL had raised Rs 3,190 crore last month, selling treasury stock at an average of Rs 2,125 apiece. The company had created the treasury stocks in 2002, when it merged Reliance Petroleum. The company has almost 200 million such shares.

On a standalone basis, RIL's audited net profit stood at Rs 15,637 crore for 2008-09 against Rs 15,261 crore in the previous year. The company's standalone net turnover was Rs 143,907 crore in the last fiscal, while it was Rs 134,338 crore in 2007-08. The comapny has spent Rs 102,288 crore towards buying raw materials including crude. Thus, the expenditure stood at Rs 123,359 crore.

The company said that it has recognised Rs 370 crore towards liabilities on account of corporate guarantee issues on behalf of a subsidiary, being an exceptional item. In the previous year, exceptional item of Rs 4,733 crore represent gains primarily arising out of transactions concerning Reliance Petroleum shares.

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