Share price of Reliance Industries, India’s most valued company, nearly halved on Thursday as it went ex-bonus from today. The Mukesh Ambani-led company had earlier announced a 1:1 bonus share issue. Record date for the bonus issue is September 9, 2017, which means, those having shares of Reliance Industries in their demat account on September 9 will be entitled to get bonus shares. So investors buying RIL shares today, won’t get bonus shares. Reliance Industries shares made a high of Rs 832.50 on Thursday compared to Wednesday’s close of Rs 1,645.40.
1) This is for the second time Reliance Industries is giving bonus share issue to its shareholders, according to BSE data. The first bonus issue was in November 2009. In bonus issue, a company converts its accumulated reserves (profits) to share capital and issues fresh shares to existing shareholders against that amount. After this bonus issue RIL’s total number of shares will get doubled.
2) The board of directors of Reliance Industries during its 40th Annual General body Meeting (AGM) held on July 21, had decided to issue 1:1 bonus shares to its shareholders.
3) Reliance Industries shares have witnessed buying in the run-up to the bonus issue. In last seven trading sessions including today, its shares have surged nearly 9 per cent. Other than the bonus issue, the strong response to JioPhone, its new 4G feature phone, has also boosted sentiments for RIL shares.
4) Jio has also launched attractive plans to lure customers to switch to JioPhone. Jio’s plan, priced at Rs. 153 for JioPhone, will offer its customers free voice calls, unlimited data and 300 free SMS in a month. Jio is offering the JioPhone effectively “free”. Customers will get back their deposit of Rs. 1,500 on return of the phone after three years.
5) Global rating agency Fitch had earlier said that JioPhone will attract first-time 4G users and help Jio gain revenue market share. Some analysts also say that other telecom operators could also launch low-cost handsets to counter the competition from JioPhone. In the first tranche of JioPhone booking, which opened on August 24, Reliance Jio has reportedly received nearly received around 6 million bookings. Meanwhile, Reliance Industries yesterday after market hours said that it will buy assets of Kemrock Industries and Exports Ltd, in a move to enter the composites and carbon fibre manufacturing business. Reliance Industries said it won an e-bidding process for Kemrock Industries, a company based in Gujarat. The e-bidding process was conducted by a consortium of 11 banks, led by Allahabad Bank.
Reliance Industries shares closed 0.56 per cent lower at Rs 818.10 compared to 0.13 per cent gain in the broader Nifty.