Reliance Industries Annual General Meeting Friday

Reliance Industries is conducting its Annual General Meeting (AGM) on Friday October 12 at Birla Matoshree in Mumbai.

A day ahead of the AGM work is on and investors are hoping for a dose of good news.Unlike his father promised in 1997 Mukesh Ambani has not issued or handed out bonus shares every five years. But clearly market men are hoping for some news.

"Looking at the price (of the stock) which is trading at Rs 2,500, I think fundamentals of Reliance justifies it. Stock spilt is just an accounting which leads to more of liquidity. Looking at the price justification public shareholders would demand that Mukesh Ambani should please them. There is a possibility that share split would happen," said Sushil C Choksey, Director, Rosy Blue Securities.

So will it be a stock split or bonus or just another dose of oil and gas discovery. Going by the high stock price, a split makes sense as it makes the stock affordable for small investors. It also increases the number of shares traded what is known as liquidity.

Wealth creation

While a bonus is a straightforward reward to RIL investors, it only reduces the amount of reserves on the balance sheet. So will it be a stock split or a bonus or just a dose of good news, the investors clearly have high expectations.

"Idea is to create wealth so that small investors benefit, it also shows the prospecting growth the sustainability and that confidence for a company to take this decision, it is a good signal about the shape of things to come," said Jigar Shah, KR Choksey Securities.

Courtesy:NDTV
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