1:1 Bonus Issue By Largest Oil & Gas Stock; 5 Days Left To Be Eligible: BUY Reliance Stock For Rs 3,300/TP

Mukesh Ambani-backed Reliance Industries will be in focus as the last date for investors to turn partly paid-up shares fully is nearing. Failure to pay the call money on partly-paid shares will eliminate the chances of being eligible for Reliance's largest bonus issue in the ratio of 1:1. Including October 3, there are now 5 days left. Reliance is likely to reward investors with bonus shares before Diwali.

Reliance Industries Share Price:

India's largest oil and gas stock is at Rs 2929.80 apiece, down by 0.81% after market hours of October 1. The company's market cap is at Rs 19,82,265.88 crore. This makes RIL the largest company in India.

The stock's 52-week high and low is at Rs 3,217.90 apiece and Rs 2,221.05 apiece on BSE. YTD, RIL shares are up by over 13%.

CLSA has recommended BUY on Reliance. The global broker has set Rs 3,300 target price, hinting at a potential 13% upside ahead. CLSA predicts Reliance's PE ratio at 27.1% by the end of FY25 and at 23.3x by FY26, while the PB ratio is seen at 2.3x by FY25 and 2.1x by FY26. The return on equity is seen at 8.8% in FY25-end and at 9.5% in FY26.

As of October 1, 2024, as per BSE data, the RIL PE ratio is at 49.53x, and ROE is at 7.77%.

Reliance Industries Bonus Issue:

RIL has announced the largest-ever issuance of bonus equity shares in the ratio of 1:1. Simply put, the Mukesh Ambani company will give 1 free share on the existing 1 equity share. RIL is planning to reward bonus shares as an early Diwali gift.

In August month, RIL said, "This will be the largest-ever issuance of bonus equity shares in the Indian equity market. The issuance and listing of bonus shares will coincide with the upcoming festive season in India and will be an early Diwali Gift to all our esteemed shareholders."

However, Reliance has recently extended the last date for payment of unpaid call money by holders of partly paid-up equity shares up to October 7, 2024.

As per the regulatory filing on September 5, the board of directors had approved forfeiture of partly paid-up equity shares on which call money (First Call or Second & Final Call or both) which remains unpaid.

Reliance announced that the forfeiture of the said partly paid-up equity shares will be effected in case the payment of call money along with interest. Thereby, failure to pay for the partly paid-up equity shares up to October 7, 2024, will lead to confiscation of the shares by the company.

If the payment of call of money and making the partly paid-up shares to fully paid-up entitles you to the following benefits as per RIL's filing:

- Bonus shares in the ratio of 1:1
- Equity shares of Jio Financial Services Limited which are currently lying with JFSL Trust - PPS (RIL).

Data from RIL showed that this is the sixth bonus issue from RIL since its IPO and the second in this Golden Decade. RIL said the bonus issue is a testimony to Reliance's continued commitment towards rewarding shareholders during the Golden Decade from 2017 to 2027.