On October 28, 2024, Reliance Industries Ltd. (RIL) stock opened at ₹1,338 per share, which looked almost 50% lower than Friday’s closing price of ₹2,655.45. This sudden decline, however, is due to company’s recent 1:1 bonus share issuance, where every shareholder received one additional share for each share they already owned. In a 1:1 bonus issue, the number of shares doubles, so the market adjusts the stock price accordingly to maintain the same overall value. This is why the stock price appears halved. On an adjusted basis, however, RIL’s share value actually went up by 0.77%, meaning the stock’s worth increased slightly after factoring in the bonus.
Recently, Reliance Industries Ltd. (RIL) has seen mixed performance in its stock value. RIL shares dropped 10% over the past month. However, for the entire year so far, it has still managed a small gain of 2.53%, compared to a 9.87% increase in the BSE Sensex. Company’s main business segments, such as refining and petrochemicals, have shown weaker growth. However, the company’s other areas, like natural gas production and digital services through its Jio platform, are doing well.
Analysts have a cautious but positive outlook on RIL’s future. They expect further growth, particularly from two areas: potential tariff hikes by Jio, which would increase revenue, and RIL’s extensive investments in renewable energy.
Reliance Industries Ltd. (RIL’s) previous bonus issues were in 2009, 1997, 1983, and 1980, with the last issued in a 1:1 ratio. In these instances, shareholders received additional shares as a reward for their investment. Analysts believe RIL is a promising long-term investment, despite any recent short-term drops in stock value. This optimism is based on RIL’s future-focused strategies, particularly in digital services and green energy ventures.
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