Reliance shares rally 2% on 1:1 bonus issue announcement ahead of AGM today

The AGM of Mukesh Ambani-owned RIL will begin today at 2 PM IST. Analysts anticipate a range of significant announcements at the 47th RIL AGM

Reliance shares in focus: Reliance Industries (RIL) share price soared up to 2.54 per cent at Rs 3072 per share intraday on the BSE ahead of its annual general meeting (AGM) on Thursday. At 01:56 PM; the share price was trading 2.08 per cent higher at Rs 3,058. By comparison, the BSE Sensex was trading 0.48 per cent higher at 82,178 levels. 

The stock price saw a sharp rise in the afternoon trade today, after the company announced plans to issue bonus shares in a 1:1 criteria i.e one bonus share for each share held by its shareholders. The company has previously issued 1:1 bonus issues in September 2017 and November 2009. 

Th is comes ahead of its AGM that will begin today at 2 PM IST. Analysts anticipate a range of significant announcements at the 47th RIL AGM, with investors expected to have high expectations based on the company's strong historical performance and recent developments across its business segments.

Investors will closely watch Reliance Industries' AGM on August 29, 2024, for updates on its Rs 75,000 crore renewable energy investments, including project timelines and sustainability goals. 

The anticipated IPOs of Reliance Retail and Jio Platforms could also impact stock prices, with expectations of one IPO before the fiscal year ends. 

Also Read: Jio IPO, new-energy biz update: Here's what to expect from RIL's 47th AGM

Additionally, any plans to reduce debt through asset sales or other means will be scrutinised for their effect on share prices. Updates on Reliance Jio’s 5G rollout, including subscriber growth and international expansion, are expected to further influence investor sentiment.

In the past five AGMs, Reliance Industries' stock experienced significant movement. The sharpest increase occurred in 2019, with the stock rising 9.7 per cent on AGM day, driven by announcements of Jio's fibre-to-home service and set-top box, along with Mukesh Ambani’s debt-free roadmap. Conversely, in 2020, the stock fell 3.8 per cent on AGM day.

Also Read: How to trade Reliance stock ahead of its AGM on Aug 29? Key levels here

Reliance Industries is a major Indian conglomerate with business verticals spanning petrochemicals, refining, oil, telecommunications, and retail sectors. The company  has the biggest market capitalisation in India to the tune of Rs 20.30 trillion. 

Its shares are trading at a price to earnings multiple of 50.64 times with an earning per share of Rs 59.16 per share.