1:1 Bonus Issue By Largest Oil & Gas Stock, Record Date Announcement On Oct 14? New BUY Target On Reliance

Reliance Industries Bonus Issue, Q2 Results: India's largest company, Reliance Industries (RIL) has declared the date of its Q2 results for the financial year 2024-25. Expectations have emerged that Reliance will announce the record date for its upcoming bonus issue of 1:1, after the deadline for partly paid-up shares ended on October 7. In the Q2 of FY24, Reliance's EBITDA is expected to grow. Ahead of Q2, Reliance is recommended to BUY from JM Financial.

Reliance Industries Share Price:

The largest oil and gas stock surged by over 2% to end at Rs 2796.05 apiece, after falling for five consecutive sessions on BSE. The company's market cap is at Rs 18,91,796.61 crore, making it the largest company of India.

Reliance witnessed fresh buying after the stock corrected by over 10% September 27 to October 7th. Reliance traded on a bearish note from September 30th to October 7th, declining by 7.2% in five sessions.

The latest drop in Reliance was due to a sell rating by brokerage AMBIT Capital. According to the broker, there are no inflexion points in sight for the conglomerate, while highlighting that except fossil fuel and consumer business, other entities are earning no returns.

However, there is a new recommendation from brokerage JM Financial on Reliance ahead of its Q2 results.

Reliance Industries Q2 Results:

As per the regulatory filing, the Board of Directors of the Company is scheduled to be held on Monday, October 14, 2024, inter alia, to consider and approve the standalone and consolidated unaudited financial results of the Company for the quarter and half-year ended September 30, 2024.

In its latest report, JM Financial said, "In 2QFY25, we expect RIL's EBITDA to grow 2.5% QoQ to INR 397bn due to sharp tariff-hike-led 9.4% QoQ rise in Digital EBITDA; that, though, is likely to be partly offset by 3.9% QoQ decline in O2C segment driven by lower refining & petchem margins while Retail EBITDA is expected to be flattish QoQ."

Following this, JM Financial has recommended BUY on Reliance for a target price of Rs 3,470.

Reliance Industries Bonus Issue:

The behemoth has announced a bonus issue of a 1:1 ratio, where it will award 1 free share on the existing 1 equity share fully paid up. The record date is yet to be announced for the same. It will be keenly watched if Reliance announces the record date for bonus issue on full paid-up equity shares on October 14.

However, Reliance had set October 7, as the last date for those investors who are holding partly paid-up shares. After approving for bonus issue in the latest AGM, Reliance on September 5th, announced the approval for the 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 has already announced that they plan to reward bonus issues ahead of Diwali.