RIL bonus shares: Reliance fixes Monday, October 28, as record date for bonus issue

Reliance Industries Ltd (RIL) on Wednesday fixed Monday, October 28 as the record date for the purpose of determining the equity shareholders of the company eligible for bonus equity shares. The oil-to-telecom major had on September 5 announced a bonus issue in the ratio of 1:1.

This is the sixth bonus issue by RIL and the largest-ever in Indian history. For this, the Mukesh Ambani-led company had sought approval of the members of the company for the increase in authorised share capital and consequent alteration to the capital clause of the Memorandum of Association. 

"We wish to inform that the Company has fixed Monday, October 28, 2024 as the record date for the purpose of determining the equity shareholders of the company eligible for bonus equity shares of the company," RIL informed stock exchanges. 

RIL shares have dropped nearly 8 per cent in the past one month. The scrip is up 4.56 per cent year-to-date against a 12.77 per cent rise in the BSE Sensex during the same period.

Since its last bonus shares in 2017, the RIL scrip has delivered 273 per cent return and stood at Rs 2,709.40 on Wednesday against Rs 725.65 on September, 7, 2017, the ex-date. The preceding four 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.

A couple of brokerages cut their target prices on the RIL stock, following its second straight quarter of soft results.

"We value RIL’s standalone business at 8x Dec’26E EV/Ebitda to arrive at a valuation of Rs 1,001 per share. We ascribe an equity value of Rs 1,001 er share to RIL’s equity stake in RJio and Rs 1,319 per share to RIL’s equity stake in Retail, as well as assign Rs 89 per share to RIL’s New Energy business," MOFSL said while revising its target price to Rs 3,255 from Rs 3,410 earlier.

Antique Stock Broking said it has cut its FY25, FY26 and FY27 Ebitda estimates for RIL by 3.6 per cent, 3.5 per cent and 3.3 per cent on the back of weaker retail run rate (for FY25) and O2C over the next two years.

"We also cut our fashion and lifestyle business EV/Ebitda multiple as part of our SoTP to 27 times from 32 times and grocery business EV/Ebitda multiple to 22 from 28, even as we roll forward our valuation to FY27E vs. 1HFY27E. Maintain HOLD with a revised SoTP price targe of Rs 2,846 per share (down from Rs 3,194 per share)," it said.