Whats up with Reliance Bonus Issue and Dividend

You may be aware that Reliance Industries Ltd in the meeting held on october 7th 2009, they announced they are giving a Bonus of 1:1 and also a dividend of of Rs. 13.

Now what does all this mean.

Bonus Shares

Bonus shares are gifts from the company, where it issues free additional shares to its shareholders. So, if you own 10 shares of Reliance Industries Ltd, you get another 10 shares at no extra cost, taking your aggregate to 20.

Dividend

Dividend is something where company pays out small amount to the shareholders. So again if you own 10 shares of Reliance Industries Ltd you would get Rs 130 as a dividend.

Its more of a confidence boosters of long term shareholders of Reliance Industries Limited.

  • Kapil Makhija

    Hi Shabbir,

    I have 9 shares of Reliance Industries Ltd which were bought in the year 1994, can you tell me how many shares i would have after adding all the bonuses and what will be the value of them today?

    Waiting for your reply.
    Thanks.

    • http://shabbir.in/ Shabbir Bhimani

      Kapil, it is very difficult to tell you how many split’s and bonuses happens since 1994.

  • Ritika

    hi,
    my grandad originally held 100shs of RPL, for which he recd 10 shares of RIL + bonus in 1998 1:1, the total holding aggregating to 20shs. Under the scheme of amalgamation he recd additional shs of Reliance Energy Ventures, Reliance Capital Ventures, Reliance Communication Ventures, RNRL each 20sh. Under RNRL Scheme of arrangement he recd additional 5shares of Reliance Power. A few days back he recd a letter from Reliance Infra to claim the undelivered Share certificate for Reliance Infra for 1sh, and a similar letter from Relaince cap for 1sh again. Pls help me with this trail ASAP, since i am unable to figure out how did i get these shs?

    P.S : all these shares are held in physical form.

    • http://shabbir.in/ Shabbir Bhimani

      Ritika, you may have missed some of the shares because I don’t think trailing is important. Just get the shares what you have pending and convert them into demat form ASAP.

  • http://www.sharemarketprofit.com Ajay

    Dear Shabbir Your book is good.
    Plz reduce the price.
    We recommend our clients also.
    Chart Patterns are good.

    Thanq
    Ajay
    http://www.sharemarketprofit.com

  • rohit

    how the share price of reliance industries effect after giving the bonus share and dividend in 2009-10
    plz give me details answer

    • http://shabbir.in/ Shabbir Bhimani

      Price decrease by the proportionate of Bonus.

  • Ashish

    Hi Shabir,

    I got RIL shares by RPL-RIL merger and still holding them. I heard that RIL has declared 1:1 bonus at end of 2009. So, would I be eligible for receiving this bonus shares? If yes, then when should these bonus shares will be in my demate account?, because I haven’t received those shares in my demat account.

    Thanks, Shabir.

    • http://shabbir.in/ Shabbir Bhimani

      They all should be in your account by now.

  • Dev

    Hi, i ve demat a/c. But can u plz tell me,how to verify that the share certificates of the company i buy,in delivery,have been deposited in my demat a/c?

    • http://shabbir.in/ Shabbir Bhimani

      Dev, See if you have the needed number of shares in the demat account you have.

  • Hitesh

    Hi,

    Can I place a query about ULIP over here ?

    • http://shabbir.in/ Shabbir Bhimani

      Hitesh, you can but I am not a Fan of Insurance as an investment option.

  • Dev

    Hi, can u pls tell me,how do we receive the devidend. Do they deposit the amount in our savings A/c?

    • http://shabbir.in/ Shabbir Bhimani

      Yes Dev

  • http://gmail Shweta

    Hi Shabbir,
    Thanks for ur reply.
    However My Dad doesnt have the FOLIO Number neither the Shares in Certificate Format. How can i get the FOLIO Number. We will open a DEMAT Account ASAP. I called RELIANCE and they said they cannot assist me without FOLIO number. PLS Help Me.

    • http://shabbir.in/ Shabbir Bhimani

      He has to have something. At least some documents to prove you own some shares.

  • http://gmail SHWETA

    Thanks a lot for ur help shabbir, i contacted reliance, but unfortunately we dont have the Folio number for the share certificates and not even the share in certificates format. Can u advise me how can my dad get the FOLIO number. PLS.

  • http://gmail SHWETA

    Hi Shabbir,
    I m glad people like u still exists, who helps others who are in need. May god bless such people.
    The reason i m contacting u is, that my dad has some reliance shares, its an old account which doesnt have a DEMAT account, he gets his shares information at the physical address. Now we have moved to a different address from the past 10 years & we dont have the code for the shares, how can we get the code for the shares. Pls help us.

    • http://shabbir.in/ Shabbir Bhimani

      Open a Demat account and they will help you convert your paper share format into Demat form. You should have the Share certificates. Also if your dad has moved ask him to see what has come to the old address and collect the papers and certificates from the old address. If no one collected anything on the old address you can contact Reliance and they will credit you the needed shares into your Demat account. BTW my Dad also had Reliance Shares in Certificate format.

  • Akbar Kazmi

    Hi Shabbir
    Can we expect RIL shares to go back to 2000 in near future? Your response will be appreciated

    • http://shabbir.in/ Shabbir Bhimani

      Yes why not but then when is the million dollar question.

  • Pravin

    hi Shabbir, I am a new investor in this field. Though I am an engg+MBA. But I opted stock as my other source of income and completed my 4 months TA course. Now as I ‘ve some knowledge (a little) of the market, Pls let me know which shares I should buy. I ‘m holding a demat a/c, having PIB and have a trading software for TA purpose. Many Thanks.

    • http://shabbir.in/ Shabbir Bhimani

      There are lots of stock which I have talked about and you can buy those at levels you are comfortable at.

  • aneeta deshmukh

    hi shabbir,
    thanx for ur quick response. i read ur equity book. it was very useful. i am thinking of using ur methods of saving tax though mutual funds. io think it si a very handy book for newbees like me. rarely do u find a book whrein these things are mentioned in such a simple way. thanx again for the quick response to all my queries.

    i would like to ask some more queries. i want to buy bajaj hindusthan, cipla,3i infotech and orchid chemicals.. when should i buy them ?

    also i have 300 shares of suzlon energy. i had bought 200 shares at 124 Rs. and then again i bought 100 on declines. what do u think i should do? do u want me to wait for some more time or average them out on declines and book profit?

    • http://shabbir.in/ Shabbir Bhimani

      I dont have investment in any of the stock you mentioned

      bajaj hindusthan, cipla,3i infotech and orchid chemicals.

      But I think 3i Infotech looks good.

      Also regarding suzlon I am not sure you should do averaging.

  • aneeta deshmukh

    hi shabbir,
    thanx for the information. i have 100 shares of vst tillers, shiv vani oil ,rural electrification, gammon india each what is ur take on each of these?

    • http://shabbir.in/ Shabbir Bhimani

      rural electrification, gammon india and good investment and others I dont track

  • slaman

    Hi,

    What is your call on Relaince Power? Is it worth holding? OR should I accumulate more? I already saw almost 50% loss on it.

    It look like this share come further down, may be below 100! What is your opinion? Any chance to come below 100?

    I wonder none of the experts were seen tracking this stock. No latest report is availble about this stock.

    • http://shabbir.in/ Shabbir Bhimani

      I don’t think there is any reason to invest in Reliance Power and if you hold it either come out of it or forget it for your Son because I am sure you would not be able to make anything out of it.

      Look for other stock in same sector or even in other sector.

  • slaman

    Hi,

    What is your call on relaince Power? Is it worth holding? Or should I accumulate more? it look like it will come further down.. may be below 100 one day!

    I wonder none of the leading experts posting anything abut this stock these days.

    Please let me know more about this stock.

  • aneeta deshmukh

    hi shabbir,
    reced ur mail about ur equity ebook i still have to go through it.but i glanced through it and found that there were questions which i had always wanted to be answered.
    my next query is about abg ship . i hold 200 shares. the company’s order book is going to be full in jan or feb 2010 with its own group giving it large orders, what is ur advice? should i hold on or sell them wwhenver i get profit?
    another one is about dlf. i have 100 shares. should i hold on to it and if yes for how long?
    will be thankful for ur advice

    • http://shabbir.in/ Shabbir Bhimani

      ABG Shipyard you should sell at whenever you get good profit. Regarding DLF on 15th there is an AGM and see what is outcome of it.

  • aneeta deshmukh

    hi shabbir.

    i have got 100 shares of adani enterprises. the rec date for bonus shares is 11 dec 2009. will the share price go up before the bonus or after the bonus? if i get decent gains then should i sell it after the bonus is declared? what would u suggest? hold them or sell them ex bonus? if i get good money before bonus and sell the shares then i can buy them when the price is slashed to half. so that will be as good as getting bonus shares.

    sorry for asking too many questions the first time itself. but it is very confusing with people giving me different views. what is ur frank opinion? does the logic of buying cum bonus and selling ex bonus really work?
    pls reply as the date for the issue of bonus is near.
    thanx

    • http://shabbir.in/ Shabbir Bhimani

      I dont track Adani Enterprise and so could not comment on the movement of its pricing.

      You should sell / buy based on your investment horizon and if this was just trading I think you should sell.

      Selling in ex-bonus means you have to wait for the time before you get your other shares.

      Yes you can sell the shares then can buy them. No issues on that part. Its as good as bonus.

      No. It works like this. You invest and sale the first investment after the ex-bonus and hold on to the second for a long period.

  • jyotsana

    thanks, i have got full bonus shares.

    • http://shabbir.in/ Shabbir Bhimani

      Glad to see that :D

  • MANOJ

    THANK YOU VERY MUCH FOR IMMEDIATE REPLY

    • http://shabbir.in/ Shabbir Bhimani

      The pleasure is all mine.

  • MANOJ

    HI SHABBIR,
    I GOT THE BONUS SHARES, BUT WILL I GET DIVIDEND AS I BOUGHT THE SHARES OF RIL ON NOV 18, 2009?

    • http://shabbir.in/ Shabbir Bhimani

      Yes and Dividend is paid before the bonus and so it should already be there in your bank account or if it comes through cheque it should be on your way.

  • jyotsana

    hi
    i have 20 shares of ril out of which i bought 14 shares of ril on 24 nov,but did not get delivery on 26 as it come short from exchange,
    now on dec 5 i just got 6 bonus shares,instead of 20.what should i do now?

    • http://shabbir.in/ Shabbir Bhimani

      See what are the prices you paid for the 14 shares and contact your broker and if you did not got the full bonus shares you would get refund of balance money

  • sourav

    dear shabbir,i bought reliance industry share on 25 nov 2009,but till today i have not got my bonus shares in my demait account,and the price was cut to half.so how much maximum time it would take to issue bonus shares into demait a/c in ur opinion.pls assist me.

    • http://shabbir.in/ Shabbir Bhimani

      This is normal and you need to wait some more time.

  • MANOJ

    Thanks for immediate help.

    • http://shabbir.in/ Shabbir Bhimani

      The pleasure is all mine

  • MANOJ

    HI SHABBIR, I AM SORRY FOR WRONGLY SPELLING OUT UR NAME AS SHABIR

    • http://shabbir.in/ Shabbir Bhimani

      Nor did I got it and it would take some time before we all get the shares.

  • MANOJ

    Hi shabir how r u, i got impressed with your kind & immediate help. My query is i have bought reliance industries shares on November 18, 2009, but till today i have not received the Bonus & dividend in my HDFC ONLINE TRADING ACCOUNT. PL ADVICE.THE SHARE QTY IS 100 SHARES OF REL IND LTD

  • MANOJ

    THE SHARE QTY IS 100 SHARES OF REL IND LTD

  • MANOJ

    Hi shabir how r u, i got impressed with your kind & immediate help. My query is i have bought reliance industries shares on November 18, 2009, but till today i have not received the Bonus & dividend in my HDFC ONLINE TRADING ACCOUNT. PL ADVICE.

  • sourav

    after record date how much days later bonus will be issued in demait a/c

    • http://shabbir.in/ Shabbir Bhimani

      Depends but it should not take too long now.

  • sourav

    if i purchased reliance industries share on 25 nov 2oo9 before ex date should i also eligible to get divedend declared by reliance indus of Rs.13 per share.

    • http://shabbir.in/ Shabbir Bhimani

      No. Dividend record date was before 25th November.

  • sourav

    dear sir i purchased reliance share on 25th nov 2009 because it is the last day to purchased the reliance share for getting bonus and my broker said if u buy stock on this day means 25th nov 2009 then u will get the bonus and the bonus will also come with him.so i want to know is it right or not or i will get the bonus in the ratio declared of 1:1.please give me ur assistance.i will very kind of u.thanks

    • http://shabbir.in/ Shabbir Bhimani

      Yes you should as your purchased date is before the record date of bonus

  • sourav

    dear sir i bought some shares of reliance industries on 25 november 2009.means on ex date.so can i get the bonus shares.and if then it comes to my brokers account not in my demait account.how it will come on my demait a/c.

    • http://shabbir.in/ Shabbir Bhimani

      Regarding your demat and broking account issue I think you should consult your broker about the terms and how things would work

  • prashant

    sir,
    i had 35 share of Rpl
    how much dividend i will get
    and how
    whether my shares will get converted to reliance and if yes how and with what value

    • http://shabbir.in/ Shabbir Bhimani

      16 shares of RPL would get 1 share of Reliance and so sell 3 shares of RPL.

  • http://shabbir.in/ Shabbir Bhimani

    November 27, 2009 is the record date for 1:1 bonus issue and so you can still get the bonuses.

  • abdul basit

    whats the target we aspect in reliance ia a year.
    thanks

    • http://shabbir.in/ Shabbir Bhimani

      Expect more than 10% return for this stock minimum unless something really goes wrong.

  • http://www.reliancemutual.com/Downloads/Default.aspx?ReportID=3B4A85D0-906A-446F-87EE-42EE2F5843E3 Mutual Fund Online

    That’s good news and a great announcement!

  • PRASHANT

    Dear Sir,
    Can i Get Bonus Share if I get Share now.

    Thanks and regards,
    Prashant

    • http://shabbir.in/ Shabbir Bhimani

      Any bonus share or Dividend is based on the date when anyone holding the shares on a particular date would get them. I doubt you can get now. BTW I recommended to Buy Reliance on Sep 27th which turned to be one of my best investment in recent times. http://shabbir.in/reliance-bharti-dish-tv/