Investors darling Reliance Industries today announced issue of bonus shares after a 12 year-hiatus,a move that analysts expect would flare up the markets on the eve of Diwali.
The company founded by Dhirubhai Ambani,credited for drawing retail investors to stock markets in the 1970s,recommended an issue of one bonus share for every share held by shareholders and would help unlock value.
The shares fell 1.57 per cent to Rs 2,099 on the Bombay Stock Exchange,but is expected to jump after the unscheduled announcement.
The board has also approved a dividend of Rs 13 per fully paid-up equity share of Rs 10 of the company to the shareholders,Reliance Industries CFO Anil Agarwal said.
Analysts said that the surprise announcement of a bonus issue by RIL,will definitely act as trigger for the market tomorrow.
This comes as a big surprise to the shareholders of Reliance Industries and would propel investor sentiment. The scrip,which has been under-performing for the past few days,is likely to open strong. It is a move by RIL to win back ivestor confidence, SMC Global Vice President Rajesh Jain said.
The last time Reliance Industries announced a bonus issue was in October 1997.