Oil-to-telecom behemoth Reliance Industries (RIL) on Friday announced bonus shares in the ratio of 1:1. This is the country’s largest bonus issue in India.
The ratio shows that a shareholder of the company will receive one share for every share held.
While addressing the 40th annual general meeting, Mukesh Ambani-led Reliance Industries also launched much-awaited 4GLTE phone which will be available at an effective price of Rs 0. However, buyer has to pay one time security fee of Rs 1,500 which will be refundable after three years.
In the past 40 years, shares of the company have already turned Rs 1,000 to over Rs 16.50 lakh till now, Mukesh Ambani said. The rise in share price shows that the scrip has doubled investor’s wealth in every 2.5 years.
Shares of the company were trading 3.78 per cent up at Rs 1,586.50 around 12.35 pm (IST). Shares of the company opened at Rs 1554 and touched a high and low of Rs 1588.20 and Rs 1544.40, respectively, so far.
On Thursday, the company posted consolidated profit of Rs 9,079 crore for the quarter ended June 30, 2017 compared with Rs 7,077 crore posted for the same quarter last year.
Jimeet Modi, CEO, SAMCO Securities said, “The predatory strategy to capture telecom space is quite aggressive and highly disruptive. Considering the size and scale of Reliance it will capture a lion’s share of the market pie and therefore will disrupt many other ancillary businesses also. It is a great opportunity for the Reliance investors to enjoy the telecom wave plus the added 1:1 bonus advantage in the short term.”
“The fundamentals of the company have been improving significantly. You can see a much larger Reliance Industries going forward in the times to come,” Deven Choksey, MD, KR Choksey Shares and Securities, said in an interview with ETNow.
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