RIL share price: Reliance shares opened at Rs 1,338, which appeared to be 49.61% lower than Friday’s closing price of Rs 2,655.45 on the Bombay Stock Exchange (BSE).
Shares of Reliance Industries Ltd (RIL) saw an apparent fall of nearly 50% on Monday, confusing many investors on trading apps. However, this drop is not an indication of a market loss but is due to the company’s latest bonus share issue.
Reason For The Fall
Reliance announced a bonus issue in the ratio of 1:1, meaning existing shareholders will receive an additional share for everyone they already own. As a result, the stock price has been adjusted to reflect this change. Bonus issues raise the total number of a company’s outstanding shares, making each share less valuable on paper while increasing market liquidity. However, bonus shares do not alter the company’s overall market value.
Previous Bonuses Announced By The Company
This is RIL’s sixth bonus issue, making it the largest of its kind in India. Since its last bonus issue in 2017, RIL shares have grown by 266%. The company’s stock closed at Rs 2,655.45 on Friday, marking a substantial rise from its September 2017 price of Rs 725.65. This growth reflects RIL’s strength and ability to continue generating value for its shareholders.
Previously, Reliance announced a 1:1 bonus issue in 2009, with similar issues in 1997. Earlier bonus shares were issued at varying ratios, including a 6:10 issue in 1983 and a 3:5 in 1980. In addition to these bonus shares, RIL has also completed five rights issues, with the most recent one being in May 2020. The company demerged Jio Financial Services Ltd in July 2023, further demonstrating its focus on reshaping its business structure.
Also read…
Reliance Industries Future Business Investments
Reliance Industries is making bold strides in future technologies. The company recently poured Rs. 75,000 crore into green hydrogen projects in Gujarat, aiming to cut production costs significantly. Moreover, they partnered with Brookfield to set up data centers across major Indian cities. In their quest for technological dominance, Reliance also joined forces with American chip maker Qualcomm to develop semiconductors locally.
Their massive investments show clear strategic thinking. First, they plan to produce 100 gigawatts of clean energy by 2030. Then, their data centers will meet India’s growing digital storage needs. Finally, the company plans to set up a chip manufacturing unit that aims to reduce India’s dependence on foreign semiconductors. These moves position Reliance as a key player in India’s tech transformation.
Written By: Dipangshu Kundu
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
Start Your Stock Market Journey Today!
Want to learn Stock Market trading and Investing? Make sure to check out exclusive Stock Market courses by FinGrad, the learning initiative by Trade Brains. You can enroll in FREE courses and webinars available on FinGrad today and get ahead in your trading career. Join now!!
