Reliance Capital to consider bonus shares next year

Industrialist Anil Ambani today announced that his group's financial services arm Reliance Capital will consider next year issuing bonus shares for its shareholders -- the first in the history of the company.

Replying to shareholders' query at the company's 24th Annual General Meeting here, Chairman Anil Ambani said that Reliance Capital will consider bonus shares next year.

The bonus issue will mark the 25th year of existence of Reliance Capital, which has never issued bonus shares in its history so far.

Across the Anil Ambani group also, there has been a bonus issue of shares only once, that is for Reliance Power, which had issued bonus shares in the aftermath of a sharp decline in the company's share price post its mega IPO of over Rs 11,500 crore -- the biggest so far in India's corporate history.

Reliance Capital shares today closed with a modest gain of 0.3 per cent at Rs 814 at the Bombay Stock Exchange, after hitting the day's high at Rs 823.90. The stock had hit its 52- week high of Rs 972.90 on October 14, 2009, but had dipped to touch a low of Rs 611.30 on May 21 this year.

At the AGM, Ambani announced that major initiatives would be taken at the company to unlock shareholder value and to propel its business group. These include seeking a banking licence and listing of life insurance business.

The company's CEO Sam Ghosh also listed out various plans for the group over the next 3-5 years.

During this period, the group aims to expand its customer base from two crore to five crore and increase the number of business partners from five to 10 lakh, Ghosh said.

The company also aims to expand its distribution reach from 5,000 to 20,000 towns and cities, he added.