Reliance Jumps 1.6% After 1:1 Bonus Share Issue

Shares of Reliance industries were trading 1.5% higher on Monday as they turned ex-bonus today, following a 1:1 bonus share issue. 

What Happened: Earlier this month, the company said it had fixed October 28 as the record date to identify the company's equity shareholders who qualify for bonus shares.

The 1:1 bonus issue means that shareholders of Reliance Industries will receive one bonus equity share with a face value of ₹10 for each share they own. This means shareholders will effectively double their holdings without any extra investment.

On Friday, Reliance Industries’ stock, which holds the highest market capitalisation on Dalal Street, closed at ₹2,655.45 per share.

See Also: Why BEL Shares Are In The Red Even Though Q2 Net Profit Beat Estimates

The company reported its second-quarter earnings on October 14, when the company saw its net profit dip 4.8% to ₹16,563 crore. Revenue from operations for the quarter under review increased marginally to ₹2.31 lakh crore. The numbers beat street estimates on net profit but missed revenue expectations.

Reliance Jio reported revenue of ₹31,709 crore, reflecting an 18% year-on-year growth, while its profit stood at ₹6,539 crores, up 23%. On the other hand, Reliance Retail’s revenue from operations stood at 66,502 crore and profit for the quarter came in at ₹2,836 crore.

Price Action: Reliance was trading 1.66% higher at ₹1,349.90 on Monday morning.

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