Reliance Industries Bonus Issue: The 1:1 bonus shares have been adjusted into India's largest company's Reliance Industries share price. Also, they have started to trade on BSE and NSE since November 1, 2024. Reliance has allotted a hefty 677 crore equity shares as a bonus. However, why are investors experiencing a decline in their portfolio performance, and when will Reliance's bonus shares get credited to demat accounts? Here are the key details!
Reliance Industries Bonus Shares Credit:
According to ICICI Direct's website, when bonus shares are issued by a company, the investment value of the stock remains unchanged. In case of bonus shares issued by Reliance Industries, additional shares will be credited to the customer's account tentatively by 18th November 2024. Until then, the portfolio will show a temporary drop in P&L. Once bonus shares are credited, the P&L will adjust to its correct value.
The brokerage has given an example: If you own 50 shares of Reliance Industries bought at Rs. 3000, your investment totals Rs. 1,50,000. With the 1:1 bonus issue, you'll receive 50 additional shares for free, increasing your total to 100 shares.
On the record date, the stock price will adjust to Rs. 1500 to reflect the bonus. Though the share price drops, your investment value remains Rs. 1,50,000 since you now hold more shares.
Until the bonus shares are credited, your investment might show a temporary 50% drop due to the price adjustment. Once credited, your portfolio will reflect the original investment value, the brokerage added.
Notably, the ownership percentage remains unchanged, as all shareholders will receive bonus shares in the same proportion, thus preserving each shareholder's relative stake in the company.
Last week, Reliance announced that it allotted 676,61,86,449 equity shares of Rs. 10/- (Rupees Ten only) each as fully paid-up bonus equity shares, in the proportion of 1:1, i.e., 1 (One) new fully paid-up equity share of Rs. 10/- (Rupees Ten only) each for every 1 (One) existing fully paid-up equity share of Rs. 10/- (Rupees Ten only) each, to the eligible members of the Company whose names appeared in the Register of Members / Register of the Beneficial Owners, as on October 28, 2024, the 'Record Date' fixed for this purpose.
Post the bonus issue allotment, the paid-up equity share capital of the Company stands increased to Rs. 13532,37,28,980 divided into 1353,23,72,898 equity shares of Rs. 10/- each.
The bonus issue ratio was 1:1. This will be the first bonus issue by Reliance in seven years. The last bonus issue was also of 1:1 ratio in September 2017. While Reliance's first bonus issue was also 1:1 in November 2009.
Reliance Industries Limited (RIL) is a Fortune Global 500 company and the largest private sector company in India. RIL is a diversified conglomerate with business interests across oil refining, petrochemicals, exploration and production, retail, and digital services.
Reliance Industries Share Price:
After market hours of November 1, Reliance stock stood at Rs 1339.10 apiece, up by 0.5% on BSE, with market cap of Rs 18,12,120.05 crore. The stock that time surged to hit an intraday high of Rs 1341.00 apiece.
BUY/SELL Reliance Stock:
As per Trendlyne data, the consensus recommendation from 37 analysts for Reliance Industries Ltd. is BUY. EPS is expected to grow by 3.7% in FY25.
The consensus 1-year average target price on Reliance is of Rs 1,616.43 apiece, hinting at nearly 21% potential upside ahead.
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