Reliance Industries has issued bonus shares in the proportion of 1:1. This means that for every one share of Reliance Industries held by the customer, one additional fully-paid up equity share will be credited. If the customer holds 50 shares of Reliance Industries, they will be credited 50 more shares. The total quantity of shares held after crediting bonus shares will be 100 shares.

These bonus shares will be credited to the customer’s account tentatively by 06^th November, 2024.

Drop in the P&L of Reliance Industries shares: When bonus shares are issued by a company, the investment value of the stock remains unchanged. In case of bonus shares issues by Reliance Industries, additional shares will be credited to the customer’s account tentatively by 18^th November, 2024. Until then, the portfolio will show a temporary drop in P&L. Once bonus shares are credited, the P&L will adjust to its correct value.

For Example: If you own 50 shares of Reliance Industries bought at Rs. 3000, your investment totals Rs. 1,50,000. With the 1:1 bonus issue, you’ll receive 50 additional shares for free, increasing your total to 100 shares.

On the record date, the stock price will adjust to Rs. 1500 to reflect the bonus. Though the share price drops, your investment value remains Rs. 1,50,000 since you now hold more shares.

Until the bonus shares are credited, your investment might show a temporary 50% drop due to the price adjustment. Once credited, your portfolio will reflect the original investment value.

Effect on the Value of the Portfolio: The total value of your investment in Reliance Industries will stay the same. After the bonus issue, the share price usually drops. But since you own more shares, your overall investment value remains unchanged.

Action to be taken by Shareholder: No action is required by shareholders as the bonus shares will be automatically credited to their demat account based on the holdings on the record date.

Change in ownership percentage in Reliance Industries: The ownership percentage remains unchanged, as all shareholders will receive bonus shares in the same proportion, thus preserving each shareholder’s relative stake in the company.