Kamalesh ArumugamOn October 28, 2024, Reliance Industries Limited (RIL), led by Mukesh Ambani, delivered a festive surprise to 3.7 million shareholders. The company unveiled a major Diwali bonus, offering a 1:1 bonus share issuance that doubles shareholders’ holdings. This marks RIL’s sixth and largest bonus issue in India’s history. This decision, announced earlier at the AGM, brings significant benefits for shareholders as their holdings effectively double.
The ex-bonus date, set for today, means that the stock now trades without the bonus entitlement. This explains the apparent 50% drop in share prices on trading apps—it’s a result of the ex-bonus adjustment, not a real decline in value. The record date determines eligibility, and investors who were on RIL’s records by this date will receive one bonus share for each share they own.
Historically, RIL has offered bonus shares twice before: in 2009 and 2017, following the same one-for-one model. Despite recent geopolitical concerns causing a 10% dip in share prices over the past month, analysts remain bullish. HDFC Securities set a target of ₹3,350, while Nomura aims for ₹3,450, making it a promising long-term investment.
Kamalesh Arumugam
