RIL continues to create Wealth
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Posted On :
Nov-10-2009
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Article Word Count :
409
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Under the scheme of amalgamation sanctioned by the High Court of Judicature at Mumbai, Reliance Petroleum Ltd.’s shareholders have been allotted one Rs. 10 fully-paid equity share of Reliance Industries Ltd. for every 16 equity shares of Reliance Petroleum Ltd. As a testament to its continued growth and ability to create wealth, on 7th October 2009, as the company completed a major cycle of value creation, it proposed a 1:1 bonus.
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Under the scheme of amalgamation sanctioned by the High Court of Judicature at Mumbai, Reliance Petroleum Ltd. has been amalgamated with Reliance Industries Ltd. Each of the erstwhile Reliance Petroleum Ltd.’s shareholders has been allotted one Rs. 10 fully-paid equity share of Reliance Industries Ltd. for every 16 equity shares of Reliance Petroleum Ltd.
To reflect the absorption of Reliance Petroleum Ltd., Reliance Industries Ltd. has announced restated results for the year ended 31st March, 2009. The turnover of the company has risen from the previous year’s Rs. 1,43,005 crore to Rs. 1,50,771 crore (US$ 29.7 billion) in the year ended March, 2008. Besides, profit from operations, before other income, interest and exceptional items, increased by Rs. 1 crore. The cash profit stood at Rs. 21,566 crore (US$ 4.3 billion), the paid-up equity capital at Rs. 1,574 crore and reserves, excluding revaluation reserve, at Rs. 1,12,945 crore.
Even during a period of significantly higher capital costs, shortage of financial capital and constrained resources for large-scale projects during the last four years, Reliance Industries Ltd. has commissioned and implemented two of its largest projects in the energy sector.
As a testament to its continued growth and ability to create wealth, on 7th October 2009, as the company completed a major cycle of value creation, it proposed a 1:1 bonus. This bonus issue of one share for every equity share held while maintaining the Rs. 13 per share dividend is to reward shareholders. Including dividend distribution tax, the amount required for the dividend is Rs. 2,219 crore. This decision to issue bonus shares after a gap of 12 years caught the markets completely by surprise and reinforced the management’s confidence in the company’s future prospects and its ability to service the capital enhanced by amalgamating Reliance Petroleum Ltd.
Following this announcement, Reliance Industries Ltd. is looking at both organic and inorganic growth. A strong balance sheet and large cash reserves combined with its Treasury Stock holding of nearly Rs. 40,000 crore, leading to substantial financial flexibility, helps Reliance Industries Ltd. to continue to fervently invest in the future. Its operating experience and project execution skills are at par with global energy majors and its new businesses and globally competitive capacity consistently create value for all its stakeholders.
These and numerous other achievements of Reliance Industries Ltd. are major milestones in the company’s journey of creating value for its shareholders and significantly contributing to the national economy.
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Article Source :
http://www.articleseen.com/Article_RIL continues to create Wealth_5219.aspx
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Author Resource :
Mukesh Ambani led Reliance Industries Limited amalgamated with its subsidiary Reliance Petroleum and soon in a testament to continued growth has proposed a 1:1 bonus for every equity share held while maintaining the Rs. 13 per share dividend is to reward shareholders.
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Keywords :
Reliance, Reliance Industries, Mukesh Ambani, Reliance Petroleum,
Category :
Business
:
Marketing
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