HomeBusinessWhy Reliance Industries Chose a Bonus Share Issue Over a Stock Split

Why Reliance Industries Chose a Bonus Share Issue Over a Stock Split

Reliance Industries Limited (RIL) on Monday issued bonus shares in the ratio of 1:1. This is RIL’s sixth and the largest bonus in Indian history. After that the value of the share has become Rs 1,338. This is 49.61 percent less than the previous closing price. Investors are seeing a loss of 49.61 on the trading app. In such a situation, their heartbeat has increased. We will tell you why this has happened.

Shares have fallen 10 percent in the last month, while they have increased 2.53 percent since the beginning of the year. Analysts are positive towards Reliance Industry shares. The company’s gas production is stable. Jio’s average revenue per user is increasing, which further strengthens the company’s future.

Reliance Industries Company has issued bonus shares

Why Reliance Industries Chose a Bonus Share Issue Over a Stock Split

Issuing bonus shares means that the company increases the number of its shares, which reduces the value of each share slightly. This increases the liquidity of shares in the market. If we understand it in a common language, then people can easily buy and sell them. This also reduces the company’s free reserves and surplus.

Reliance Industries has given bonus shares 5 times

Why Reliance Industries Chose a Bonus Share Issue Over a Stock Split

RIL has given bonus shares 5 times so far. Earlier, it had issued bonus shares in 2017. At that time the price of one share was Rs 725.65. In such a situation, till now the company has given a profit of 266 percent to its shareholders. Earlier, bonuses have also been issued in 2009, 1997, 1983 and 1980.

Also Read – Anil Ambani’s company repaid the bank loan, Reliance Power shares rose

LATEST POST