Mukesh Ambani offers grand Diwali gift to 3.7 million shareholders; Stock dividend to be credited soon!
PTC News Desk: Mukesh Ambani, the Chairman of Reliance Industries, has officially announced the record date for the much-anticipated issuance of bonus shares by the company. Set for October 28, this announcement comes as a Diwali gift for Reliance Industries’ shareholders, offering significant value just before the festive season.
Mukesh Ambani, Asia’s richest businessman, is set to delight the 37 lakh shareholders of Reliance Industries with a special Diwali bonus. According to the official announcement, Reliance Industries has finalised October 28, as the record date for distributing bonus shares to its investors.
The bonus shares will be issued in a 1:1 ratio, meaning shareholders will receive one bonus share for every share they currently hold. This move aims to reward long-term investors while boosting the stock’s attractiveness.
In a regulatory filing with the stock exchange, Reliance Industries confirmed the bonus share issuance and the corresponding record date of October 28. Shareholders who hold Reliance Industries shares as of this date will be eligible to receive bonus shares.
This decision was first made public during Mukesh Ambani’s speech at the company’s Annual General Meeting (AGM) on August 29, where he highlighted the company’s commitment to rewarding its investors. The board of directors formally approved the bonus share issue on September 5, making this one of the most anticipated events in the company’s recent history.
Reliance Industries shares have seen significant movements in anticipation of the bonus issue. Leading financial institutions have provided various targets for the stock's future performance. HDFC Securities has rated Reliance Industries shares with an "ADD" rating, setting a target price of Rs 3,350.
Nomura has issued a "Buy" rating with a higher target of Rs 3,450, while CLSA has also maintained an "Outperform" rating, targeting Rs 3,300. UBS joined the optimism with a "Buy" rating, placing its target price at Rs 3,250. These ratings indicate strong confidence in the company’s future prospects, especially following the bonus share issuance.
Despite the positive buzz surrounding the bonus shares, Reliance Industries’ financial performance for the July-September quarter of 2024 saw a slight decline. The company reported a 5 per cent drop in net profit, with consolidated profits falling to Rs 16,563 crore (Rs 24.48 per share), compared to Rs 17,394 crore (Rs 25.71 per share) in the same period the previous year. The company attributed this decline primarily to weaker margins in its oil refining and petrochemical businesses, sectors traditionally critical to its revenue streams.
The oil-to-chemical (O2C) business, which includes Reliance’s twin oil refineries in Jamnagar, Gujarat, and its extensive petrochemical operations, faced headwinds due to global oversupply.
However, Reliance’s other ventures, particularly its retail and telecom arms, delivered steady performances, balancing the overall results. The company’s Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) dropped by 2 per cent to Rs 43,934 crore. Rising finance costs, up by 5 per cent to Rs 6,017 crore, also contributed to the dip, mainly due to higher debt levels.
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Reliance Industries, founded by Dhirubhai Ambani, has grown into India’s largest conglomerate, spanning sectors such as petrochemicals, telecom, retail, and digital services. The company’s journey from a small trading business to a global powerhouse is a testament to the Ambani family's vision, with Mukesh Ambani now leading the charge into the future.
With the company’s shares consistently under the spotlight, the bonus shares announcement has garnered significant attention from investors. Reliance Industries' shares, or "Reliance stocks," as they are often referred to, continue to attract interest due to the company’s massive market cap, which makes it one of the most valuable companies globally.
Mukesh Ambani, who resides in his famous Mumbai residence Antilla, continues to lead the company toward new heights. His salary and net worth are frequent topics of discussion in business circles, with Mukesh Ambani’s net worth making him one of the richest individuals in the world. His wife, Nita Ambani, and their children, Anant Ambani and Isha Ambani, are also key figures in the Reliance story, contributing to various facets of the company’s operations.
As Reliance Industries continues to grow and expand its influence, the upcoming bonus share issuance and strong market performance provide a positive outlook for shareholders. Investors are eagerly awaiting the Reliance Industries bonus shares record date of October 28, 2024, a significant event in the company’s remarkable journey.
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- With inputs from agencies
