Shares of Reliance Industries Ltd (RIL) will turn ex-date for bonus issue in the ratio of 1:1 on Monday. Today is also the record date for the same. The most-valued stock on Dalal Street in terms of market capitalisation, closed at Rs 2,655.45 apiece on Friday. This is the sixth bonus issue by RIL and the largest-ever in Indian history. RIL shares shed 10 per cent in the past one month. The scrip is up 2.53 per cent year-to-date against 9.87 per cent rise in the BSE Sensex during the same period. Since its last bonus shares in 2017, the RIL scrip has delivered 266 per cent return and stood at Rs 2,655.45 on Friday against Rs 725.65 on September, 7, 2017, the ex-date. The preceding bonus issues were announced in 2009, 1997, 1983 and 1980. Reliance Industries had in 2009 announced bonus shares in the 1:1 ratio, with the stock turning ex-date on November 26 that year. The 1997 bonus issue too was declared in the 1:1 ratio. The 1983 bonus shares were offered in the 6:10 ratio and 1980 in the 3:5 ratio. Besides this, RIL announced a total five rights issues, the last one in May 2020. In July 2023, Jio Financial Services Ltd was demerged.
Analyst views A few analysts are largely neutral-to-positive on RIL shares. While Reliance’s core business is likely to remain muted with weak refining and petchem outlook in the near term, gas production is expected to remain stable at 28-30 mmscmd with a realisation of $10/MMBtu, PL Capital Institutional Equities said. "Jio’s ARPU rose 7 per cent QoQ to Rs 195 and should improve over the next 2 quarters too due to the tariff hike undertaken by the company. Retail is also likely to continue its steady performance. Our estimates are not factoring in numbers of new energy businesses where RIL is investing Rs 75000 crore. Demerger of Retail/ Jio Platforms and more clarity of new energy businesses will improve outlook," PL Capital said in the Diwali note. JM Financial said RIL has plans to grow its revenue from Jio and retail businesses in the next 3-4 years. Additionally, its focus on green energy positions it well for the future, it said.
The brokerage, which sees about 28 per cent upside on RIL over the next 6-12 months, said earnings growth momentum for RIL may remain strong across segments. It sees 15 per cent PAT growth annually for RIL over FY24-27.