India's largest stock, Reliance Industries (RIL) has been on a losing streak for five consecutive trading sessions, falling by over 10% on BSE. This comes at a time when Reliance fixed October 7th as the last date to be eligible for those investors who hold partly paid-up equity shares. The downfall in Reliance comes amidst a sell rating by brokerage AMBIT.
Reliance Industries Share Price:
After market hours of October 7, Reliance stock ended at Rs 2740.95 apiece, down by 1.18% on BSE, with a market cap of Rs 18,54,492.34 crore.
The oil and gas giant stock was down by 1.5% on October 4, further down by 3.91% on October 3. While the stock fell by 0.8% on October 1, which is the slowest decline in five sessions. On the last trading day of September, Reliance stock dipped by 3.23% on the BSE.
That being said, Reliance stock has corrected from Rs 3,052.40 on September 27, to Rs 2,740.95 apiece - a decline of 10.20% during this period. From September 30th to October 7th, Reliance stock is down by 7.2% in five sessions.
Due to sharp selling, on a year-to-date basis, Reliance stock's overall gains are squeezed by nearly 6% on BSE. The stock's 52-week high and low is at Rs 3,217.90 apiece and Rs 2,221.05 apiece respectively.
Why Reliance Stocks Are Falling?
Brokerage Ambit Capital maintained its 'SELL' rating on the billionaire Mukesh Ambani-backed stock. According to the broker, there are no inflexion points in sight for the conglomerate, while highlighting that with the exception of fossil fuel and consumer business, other entities are earning no returns.
Following this, Ambit has set a target price of Rs 2,650 apiece on Reliance.
Meanwhile, as per Trendlyne data, the consensus recommendation from 37 analysts for Reliance Industries Ltd. is BUY. Of the total, 14 analysts have recommended 'STRONG BUY' and 11 analysts have advised 'BUY'. The average 1-year target price is at Rs 3306.39 apiece.
Reliance Industries Bonus Issue:
The last date for those investors who are holding partly paid-up Reliance shares, ended on October 7. Although October 7th is not a record date meant for investors who are already holding fully paid-up equity shares of Reliance, this date is important for those who have partly paid up. This is an extension from the earlier due date of September 30.
After approving for bonus issue in the latest AGM, Reliance on September 5th, announced the approval for forfeiture of partly paid-up equity shares on which call money (First Call or Second & Final Call or both) remains unpaid.
Moreover, Reliance also said that the forfeiture of the said partly paid-up equity shares will be effected in case the payment of call money along with interest. Thereby, failure to pay for the partly paid-up equity shares up to October 7, 2024, will lead to confiscation of the shares by the company.
If the shares are confiscated, then these investors will not be eligible to enjoy the rewards of --- - Bonus shares in the ratio of 1:1; - Equity shares of Jio Financial Services Limited which are currently lying with JFSL Trust - PPS (RIL).
Reliance's bonus issue is the largest-ever issuance of bonus equity shares in the Indian equity market. RIL is planning to reward bonus shares as an early Diwali gift. Reliance will give 1 free share on existing 1 equity share.
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