The board of Reliance Industries Ltd (RIL) is set to finalize its sixth-ever bonus share issue today, marking the first such move since 2017. The company, led by Mukesh Ambani, has proposed issuing bonus shares in a 1:1 ratio, as the stock has shown significant growth over the years, currently trading above Rs 3,000.
RIL’s previous bonus issue in 2017 saw its stock price rise by 318%, climbing from Rs 725.65 on September 7, 2017, to Rs 3,029.80 on Wednesday. Prior to that, the company had issued bonus shares in 2009, also in a 1:1 ratio. Other historical bonus share issues include the 1997 (1:1), 1983 (6:10), and 1980 (3:5) offers.
In 2024, Reliance Industries' stock has surged by 17%, outperforming the BSE Sensex’s 14% rise. The stock reached a 52-week high of Rs 3,217.90 on July 8. Analysts hold mixed opinions on its future performance, with some remaining positive while others maintain a neutral outlook.
Market experts suggest that Reliance’s growth will be driven by its retail and telecom divisions, while its oil-to-chemicals business consolidates. Some analysts have raised their target prices, with estimates ranging from Rs 3,300 to Rs 3,530 per share. However, caution remains regarding high valuations, cash flow concerns, and return ratios, leading a few analysts to recommend a more cautious approach.
The stock has consistently hovered around its 100-day moving average, currently at Rs 2,958. On Wednesday, the stock closed at Rs 3,031.95.
Technical analysts note that the stock is showing signs of strength, trading above its key moving averages, indicating potential for further growth.
In addition to bonus share issues, Reliance Industries has also announced five rights issues in its history, though it has never opted for a stock split.
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