RIL AGM okays 1:1 bonus issue; Nov 27 is record date

Last Updated: Tuesday, November 17, 2009 - 20:42

Mumbai: The shareholders of the country`s
most valued company Reliance Industries (RIL) on Tuesday approved
the 1:1 bonus issue for which the company fixed November 27,
2009 as the record date.

In a filing to the Bombay Stock Exchange, RIL said the
shareholders at the 35th annual general meeting today approved
November 27, 2009 as the record date for determining the
shareholders who will be entitled to bonus issue.
The RIL board had last month approved 1:1 issuance of
bonus shares after a 12-year hiatus. The last time RIL
announced a bonus issue was in October 1997.

The company founded by the late Dhirubhai Ambani,
credited for drawing retail investors to the stock markets in
the 1970s, recommended an issue of one bonus share for every
share held by shareholders, which the company felt would help
unlock value.

"The proposal for bonus and dividend continue RIL`s
tradition of awarding shareholders on a sustained basis. If we
look at our track record since we listed in 1978, our
shareholders have got 25 per cent compounded return over these
31 years since RIL became a public company," RIL CFO Alok
Aggarwal had said.

However, shares of RIL today shed 0.65 per cent to close
at Rs 2,133.75 on the BSE, as the AGM failed to enthuse
investors, who were expecting some big-bang announcements. The
market as a whole had a choppy day, as Asian cues were not
encouraging.

The RIL counter, which carries the most weight in the
benchmark Sensex, has gained as much as 74 per cent so far
this year from Rs 1,230.25 on December 31, 2008.
RIL to invest Rs 500 cr in Reliance Foundation

Mukesh Ambani-run Reliance
Industries plans to invest Rs 500 crore to set up a
philanthropic entity called Reliance Foundation with plans to
scale up its contribution to Rs 1,000 crore.

"We envisage Reliance Foundation to become one of the
foremost professional philanthropic organisations in the
world. RIL is making an initial contribution of Rs 500 crore
and rapidly scale it up to Rs 1,000 crore," RIL`s Chairman and
Managing Director Mukesh Ambani, said here.

More resources will be made available in the coming
years as the foundation expands its activities, Ambani said.

In its charter, The Reliance Foundation would address
issues like formal and vocational education, affordable
high-quality health care, meaningful rural development and
urban renewal and protection and promotion of India`s heritage
of arts and culture.

Over the coming months, the foundation will develop
specific programmes and projects that would address some of
our most pressing challenges, he said.

Bureau Report



First Published: Tuesday, November 17, 2009 - 20:42

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