Mumbai: Reliance Industries on Thursday surged more than 6 percent in morning trade as investors cheered the bonus issue of the company, which came after a 12-year hiatus.
Shares of RIL spurted after the country`s largest private
sector firm, yesterday announced a bonus issue of one share
for every share held and declared a dividend of 130 percent.
On the National Stock Exchange the stock surged more than
6 percent to Rs 2,135.50, and on the Bombay Stock Exchange,
it surged 5.24 percent and witnessed a high of Rs 2,209.
"Yesterday`s announcement came as a big trigger for the
stock, which was behaving in a range-bound manner in the last
few trading sessions and amid the ongoing tussle with a Anil
Dhirubhai Ambani Group firm," marketmen said.
On the volume front over 25 lakh shares exchanged hands
on the NSE and nearly 9 lakh shares got traded on the BSE in
the first few minutes of trading.
The bonus announcement came as a big surprise to the
shareholders of Reliance Industries and is expected to help
regain flagging investor confidence in the scrip, which has
been on a downslide since October 1.
"Since the demerger, RIL has created value of Rs 2,47,000
crore in market capitalisation. Shareholders have earned 40
percent compounded return," RIL said.
RIL which has the highest weightage in the indices helped
the Sensex to shot up by 192 points and the wide based Nifty
also drove past the 5000-mark.