Mon Oct 28 15:02:05 UTC 2024: ## Reliance Industries’ Bonus Share Issue Confuses Investors, But Stock Actually Rises

**Mumbai, India** – Reliance Industries Limited (RIL) shares experienced a significant drop of nearly 50% on Monday, causing confusion among investors using trading apps. However, the apparent fall was not due to a market decline but rather a result of the company’s recent bonus share issue.

The Bombay Stock Exchange (BSE) saw RIL shares open at Rs 1,338, seemingly 49.61% lower than Friday’s closing price of Rs 2,655.45. However, on an adjusted basis, the share price actually increased by 0.77% on Monday. This adjustment is due to RIL’s 1:1 bonus share issue, meaning existing shareholders will receive one additional share for every share they already own.

While the bonus issue does raise the total number of outstanding shares, making each share less valuable on paper, it does not alter the company’s overall market value. This is RIL’s sixth bonus issue, making it the largest of its kind in India.

Despite the recent dip, RIL’s shares have shown significant growth since the last bonus issue in 2017, increasing by 266%. The company’s stock performance reflects its diversified investments in telecom, retail, and green energy.

Analysts remain positive to neutral about RIL’s stock, highlighting growth potential in sectors like telecom and retail. While refining and petrochemicals may face slower growth, Jio’s Average Revenue Per User (ARPU) has increased by 7% quarter-on-quarter, reaching Rs 195, with further growth anticipated.

RIL is also investing Rs 75,000 crore in its new energy business, which analysts believe will positively impact long-term growth as more details on its green energy efforts are revealed. The company’s commitment to sustainability aligns with broader market trends.

The adjustment in RIL’s share price is a routine practice for bonus issues. It makes the stock more accessible to retail investors by increasing share liquidity and broadening the investor base.

While RIL shares have fallen by around 10% in the past month, they remain up by 2.53% year-to-date, outperforming the BSE Sensex. The company’s strong performance, fueled by its diverse investments, positions RIL for continued success in the long term.

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