Reliance Industries Bonus Issue: India's largest company in terms of market share, Reliance Industries has announced a massive reward for its employees under the ESOP scheme. This announcement comes ahead of the company's upcoming bonus issue 1:1. At the latest, brokerage Morgan Stanley is 'Overweight' on the stock, and recommended a target price of Rs 3,325 ahead.
Reliance Industries Share Price:
The largest oil and gas stock is currently trading marginally up to Rs 2,753.80 apiece on BSE on October 10, with m-cap of Rs 18,63,215.07 crore. The stock's 52-week high and low is at Rs 3,217.90 apiece and Rs 2,221.05 apiece respectively.
Reliance has a price-to-equity ratio of 46.49%, while the return on equity is about 7.77%. YTD, the stock is up by 6.34%.
Reliance Industries Morgan Stanley:
At the latest, the global brokerage Morgan Stanley has set a target price of Rs 3,325 apiece, with an Overweight rating on Reliance. The target price is trimmed from an earlier target of Rs 3,416 apiece.
Stanley observes that despite the cyclical challenges in its core business like refining and retail, the broker believes that these concerns are likely reflected in the current pricing.
The broker expects re-rating in Reliance to gain momentum by 2025, as new refining capacity is soaked up, coupled with improvement in retail business' profitability, and cash flow commences from new energy ventures by then.
Also, Reliance's telecom business continues to be a bright spot for the conglomerate, owing to tariff hikes bolstering earnings and EBITDA despite subscriber churn, as per the brokerage.
That being said, Reliance has moved up to fifth place in Stanley's preference list, compared to its earlier sixth rank.
Reliance Industries ESOPs:
On October 9, the company announced the allotment of 1,00,000 equity shares of Rs. 10/- each pursuant to Reliance Industries Limited Employees' Stock Option Scheme 2017.
Under the scheme, a total number of 6,33,19,568 options were approved on September 1, 2017. Reliance at that time said that this would be adjusted for any future bonus issue of shares stock split or consolidation of shares and also may further be adjusted for any corporate action(s).
Also, the vesting Period shall not be less than 1 (one) year from the Grant Date and shall not exceed 5 (five) years or such other period as may be decided by the Committee. Meanwhile, the exercise Period would commence from the date of Vesting and would expire not later than 7 (seven) years from the Grant Date or such other period as may be decided by the Committee.
Reliance Industries Bonus Issues:
The behemoth has announced a bonus issue of a 1:1 ratio, where it will award 1 free share on the existing 1 equity share fully paid up. The record date is yet to be announced for the same. It will be keenly watched if Reliance announces the record date for bonus issue on full paid-up equity shares on October 14.
As per the regulatory filing, the Board of Directors of the Company is scheduled to be held on Monday, October 14, 2024, inter alia, to consider and approve the standalone and consolidated unaudited financial results of the Company for the quarter and half-year ended September 30, 2024.
Reliance has already announced that they plan to reward bonus issues ahead of Diwali.
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