RIL BONUS ISSUE, NEWS: RELIANCE INDUSTRIES SHARE PRICE SET TO BECOME CHEAPER BY...

RIL Bonus Share Ratio: Reliance Industries (RIL), the country's largest conglomerate run by Asia's richest man Mukesh Ambani, is to make a major move to its shareholders today. RIL's board will meet today to evaluate and adopt a proposal for bonus issuing. The RIL bonus share record date and ex-date may also be declared today by the board. RIL Chairman Mukesh Ambani made the announcement about bonus shares during the company's Annual General Meeting (AGM) last week.

If the RIL board announces bonus shares for its investors today, it will be the company's first such corporate move in seven years.

RIL Bonus Share Ratio

According to Reliance Industries' exchange filing, the bonus share ratio would be 1:1. RIL will issue one bonus share for every one share.

RIL Bonus: Will RIL Stock Become Cheaper?

Bonus shares are extra shares given to current shareholders for free, based on how many shares they already own. Instead of paying out profits as dividends, the company turns these profits into more shares.

The idea is that the total number of shares increases in a set ratio. For example, if you have 100 shares, you might get an extra 200 shares, making your total 300 shares. Even though you have more shares, the total value of your investment stays the same.

Companies give out bonus shares to attract more small investors and to increase the number of shares available. When the price per share is high, it can be hard for new investors to buy them. By increasing the number of shares, the price per share goes down, but the total value of the company stays the same.

If we consider this the RIL stocks may get cheaper after the bonus issue which encourage new retail investors to invest in the stocks of the company.

RIL Bonus: Expected Share Price after Bonus Issue

After the bonus issue, if you held 10 shares priced at Rs 3029.80 each, your total investment value would be Rs 30,298. With the bonus issue, you now have 20 shares. The share price adjusts to Rs 1514.9, but your total investment value remains the same at Rs 30,298. This means you have more shares, but the overall value of your investment hasn't changed.

Bonus Issue	No. of shares held before Bonus.	Share price before Bonus issue	Value of Investment	No. of shares post Bonus.	Share price after Bonus issue
1:1	10	Last closing price (Rs 3029.80)	Rs 30298	20	Rs 1514.9

RIL Bonus Record Date

RIL did not disclose the bonus record date in its most recent filing. Most likely, the board will also declare the record date today. The record date will allow the company to decide which shareholders are eligible to receive bonus shares.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)

2024-09-05T05:30:51Z dg43tfdfdgfd