Mukesh Ambani at AGM: Reliance considering bonus share in 1:1 criterion

Reliance Industries Limited (RIL) Chairman Mukesh Ambani has announced plans to allot a bonus issue for shareholders in a 1:1 criterion. Soon after Ambani made the announcement at the company’s 47th Annual General Meeting (AGM) on Thursday, RIL share prices surged intraday.

A 1:1 criterion means the company will give a bonus share for every share possessed by a shareholder. Ambani said his company’s board of directors would consider the matter on September 5.

“At 1.45 pm today, Reliance Industries Limited has sent a notice to the stock exchanges that the Board of Directors will meet on 5th September to consider issuing bonus shares in the ratio of 1:1,” Ambani declared while addressing the AGM, adding: “When Reliance grows, it rewards its shareholders.”

Following the announcement, price of the RIL share rose 2.63 per cent to scale a high of Rs 3,074.80 on the BSE Sensex. The surge marked an 18-per cent rise year-to-date. The price of the share ended 1.64 per cent higher at Rs 3,044.75.

BIG AI PLANS

Among other announcements, Ambani said RIL’s mobile network company, Jio, would introduce an offer of up to 100 GB of free cloud storage for users, and launch a Jio AI Cloud Welcome Offer during Diwali.

That apart, Jio is developing a comprehensive suite of tools and platforms known as Jio Brain, which would cover the entire AI lifecycle. The suite would facilitate AI adoption in Jio connections and other RIL businesses.

“The company plans to leverage AI for advancements in agriculture, education, healthcare, and small businesses, and aims to become a global leader in AI by making it affordable in India,” Ambani said.

“As I told you last year, Reliance has now become a net producer of technology. Breakthrough technologies and innovation have always been the greatest wealth creators for nations, as well as for corporates. Reliance internalised this Vikas Mantra at every stage of our growth,” he said at the AGM.

“First, we are embedding innovative technologies in every single business to generate ever-greater value for our customers. Second, our talented engineers and scientists are incubating several critical technological innovations in-house to enhance our product and service offerings. Third, we have built an AI-native digital infrastructure for all Reliance businesses, and have built our software stack, integrating end-to-end workflows and real-time dashboards,” he added.

Among other important announcements was RIL’s plans to invest more than Rs 3,643 crore in FY24. 

‘CREATING WEALTH FOR INDIA’

Ambani said the RIL mantra was not to settle for short-term profits. Rather, his company looked at the big picture of “creating wealth for India”.

“We are not in the business of pursuing short-term profit and hoarding wealth. We are in the business of creating wealth for India. We are in the business of providing the highest quality products and services that improve efficiency, productivity, and ease of living for Indian consumers,” he said.

“It is also no longer possible, nor acceptable, to ignore the stark developmental disparities amid rising aspirations for a better life in the Global South,” Ambani said. “However, even in these uncertain times, there is one absolute certainty. And that certainty is the continued Rise of New India as it marches confidently towards the goal of Viksit Bharat in Amrit Kaal,” he noted in his speech.