Reliance Industries bonus shares announcement today; RIL bonus share ratio, history & more

The Reliance Industries Ltd (RIL) board is all set to decide on the sixth ever bonus share issue of the oil-to-telecom major, the first since 2017, later today. The Mukesh Ambani-led company has proposed issuing bonus shares in the 1:1 ratio, as the scrip delivered multifold returns in the past few years to trade above the Rs 3,000 level.   

RIL's last bonus issue came in 2017 and the scrip has jumped 318 per cent since then, to Rs 3,029.80 apiece on Wednesday from Rs 725.65 level on September 7, 2017, the day it turned ex-date for the 1:1 issue. Reliance Industries had announced a similar bonus share ratio for its 2009 issue. The stock turned ex-date on November 26 that year. The 1997 bonus issue 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.

Reliance Industries shares are up 17 per cent in 2024 so far against a 14 per cent rise in the BSE Sensex during the same period. The RIL stock hit a 52-week high of Rs 3,217.90 on July 8. Post the recent rise, analysts are neutral to positive on the stock. 

Reliance Industries is more of an India theme where retail and telecom will drive growth while O2C consolidates, Bernstein said in an August 29 note. This brokerage raised its target for RIL to Rs 3,440 due to higher valuations assigned to Reliance Jio following tariff hikes. CLSA finds the stock worth Rs 3,300. Jefferies has a target price of Rs 3,530 on the stock. Morgan Stanley sees the stock at Rs 3,416. 

On the flip side, despite expecting an earnings per share growth of 14.2 per cent over FY25–27 and the 1:1 bonus issue, ICICI Securities retained a cautious stance on Reliance Industries, owing to high multiples, muted free cash flow yields and return ratios. It suggested a target of Rs 2,970 on the RIL stock. Antique Stock Broking said it remains neutral on the stock with a 'Hold' rating and a SoTP target price of Rs 3,213, as it believes most of the visible growth is discounted.

All the major RIL selling in the last 10 months ended marginally below the 100-day EMA level, which is currently placed at Rs 2,958 level. On Wednesday, the scrip settled at Rs 3,031.95.

JM Financial in a technical note said the Reliance Industries stock has been forming a pattern of higher top higher bottom, a bullish formation, following a fall from its 52-wek high level. 

The stock has started trading above all its key long term and short-term EMAs, suggesting further strength to prevail, the brokerage said.

Other than bonus issues, Reliance Industries also came out with five rights issue in its listing history. There was no stock split.