New Delhi: Mukesh Ambani-led oil-to-consumer conglomerate Reliance Industries’ board will meet on Thursday, September 5, 2024, to decide on the proposal for a bonus share issue to shareholders of the company. Ambani had announced the proposal during RIL’s annual general meeting last month in which it was stated that the board will take a call on a 1:1 bonus share issuance.
According to a calculation, RIL’s stock has surged over 300 per cent since the last bonus share issuance in 2017 from Rs 725.65 apiece to Rs 3,011.65 apiece today.
Reliance bonus history
Reliance has issued bonus shares on 5 instances since its inception. The last bonus issuance took place in 2017 in a ratio of 1:1 where shareholders were issued an additional share for every share held by them. The first bonus shares were issued by the comoany in 1980 in the 3:5 ratio. This was followed by a 6:10 bonus shares issue in 1983. Since then, RIL has issued a 1:1 share bonus in 1997 and 2009.
Criteria for bonus share issuance
Companies are required to receive the board’s nod for bonus share issuance. The company then announces a record date. The number of shareholders as of this date will receive the bonus shares. Bonus share issuance is a common practice among listed companies to attract investors. These incentives entice customers to buy the company’s shares. This is also an accepted way to reward existing shareholders for their faith in the company.
RIl share price history
Reliance Industries’ share price slipped 0.58 per cent on Thursday to Rs 3,011.65 apiece at 1:43 pm. The company’s stock price was down 1.47 per cent in the past week. In the past month, the company’s stock price rose 3.47 per cent. RIL’s share price surged over 24 per cent in the past year.
RIL share price target
Brokerage Bernstein gave a share price target of Rs 3,440 apiece on the shares of Reliance Industries, citing tariff hikes by Reliance Jio. CLSA set a Rs 3,300 per share target price for RIL. The company;s share price target has been set at Rs 3,530 apiece by Jefferies and Rs 3,416 apiece by Morgan Stanley, the India Today reported.
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Reliance bonus share update: Mukesh ambani-led RIL’s board will review a proposal to issue bonus shares to existing shareholders in a 1:1 ratio. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
