Monday, October 28, 2024, has been designated as the record date by Reliance Industries Ltd. (RIL) to identify shareholders who qualify for its historic bonus equity issue. On September 5, RIL announced its sixth and biggest bonus issue in Indian corporate history: a 1:1 bonus share issue. The Mukesh Ambani-led firm was given permission to amend its Memorandum of Association’s capital structure by increasing its permitted share capital.
“We confirm that Monday, October 28, 2024, is the record date for determining shareholders eligible for bonus equity shares,” RIL told stock exchanges.
Despite a nearly 8% drop in the last month, RIL shares are still up 4.56% so far this year, while the BSE Sensex has increased by 12.77%. RIL shares have returned an incredible 273% since the last bonus issue in 2017. As of this now, they are trading at ₹2,709.40, up from ₹725.65 on the ex-date in 2017.
The ratios of the four prior bonus issues, which took place in 2009, 1997, 1983, and 1980, ranged from 1:1 to 3:5. In addition, RIL demerged into Jio Financial Services in July 2023 and finished five rights issues, the most recent of which was in May 2020.
Even with its noteworthy accomplishments, RIL has recently encountered some difficulties. Some brokerages have reduced their price estimates after two quarters in a row with poor performance. RIL’s standalone business and important divisions like Retail and Jio were valued by Motilal Oswal Financial Services (MOFSL), which changed its target price from ₹3,410 to ₹3,255 per share. Similar to this, Antique Stock Broking cut its target price for RIL from ₹3,194 to ₹2,846 per share and lowered its FY25–FY27 EBITDA estimates, citing changes in valuation multiples and poorer retail performance.
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