Tue Oct 29 09:23:10 UTC 2024: ## Reliance Industries Shares Plunge 50% on Ex-Date for 1:1 Bonus Issue, But Investors Shouldn’t Panic
**Mumbai, India** – Shares of Reliance Industries Ltd (RIL), India’s most valuable company, experienced a significant price drop on Monday morning after turning ex-date for a 1:1 bonus share issue. While the share price opened at Rs 1,338, a staggering 49.61% lower than Friday’s closing price of Rs 2,655.45, investors should note that this represents the unadjusted price. On an adjusted basis, the stock actually rose 0.77%.
The bonus issue, which marks the sixth time RIL has undertaken such a move and the largest ever in Indian history, increases the number of outstanding shares, leading to a proportionate reduction in share price. While this impacts the free reserves and surplus of the company, it also improves liquidity.
Despite the recent price drop, RIL shares have shown a strong performance over the long term, delivering a 266% return since its last bonus issue in 2017.
Analysts remain largely positive on RIL’s future, citing the stable gas production, Jio’s increasing ARPU (average revenue per user), and continued strong performance in the retail sector. While the company’s core business faces near-term challenges, its investments in new energy businesses offer potential for long-term growth.
The demerger of Jio Financial Services Ltd in July 2023 and further clarity on the new energy businesses are expected to improve investor outlook.
First Piper 