Reliance declares bonus shares

In a surprise move, reliance declares 1:1 bonus shares. may be to cover up some poor results? bonus given after 12 years.

Have No Idea Why Companies Call Them Bonus...Considering Price Gets Adjusted On The Ex-Date....Something Like...... The Offers One Sees...Free Gift For 100 Bucks...

SavantGarde

Net profit down, camouflaged it with a bonus Issue, anyway whose complaining, although I dont hold reliance, it will take the market up for a short period, apne chillar pillar bhi sath mein badenge
:clapping:

I don't hold long or short RIL or nifty futures .
Let the long position holders enjoy !

One question I always asked.What I found out is this.
When a bonus is declared it takes time for the price to fall appropriately according to the ratio declared. Those in Mumbai receive their shares typically faster (credited to their account) and before the bonus announcement gets reflected in the price they sell ,thus earning risk-free profits.
Another fact I've observed is that after say a 1:1 bonus often the price goes to 60% of the ex-bonus price,thus yielding capital appreciation. This is often due to greater volumes due to lower Market prices. :clap:

What I'm wondering is how come Grasim, a renowned Birla company did not give a bonus for the last 15 years and instaed comes up with this weird demerger. Long term investors in this stock are no doubt disappointed.

Its actually a Birla Company merger and demerger.
Its consolidating all cement cos under one roof, tyre in another etc etc.

Maybe now it is being discounted or rate is falling, but in the long run it always benefits the shareholders ....

Hi Savant,
If the company in the question is a SOLID one then
Post-bonus price will reach the Pre-bonus price.

Take ,for the example of LARSEN & TOUBRO, the post
bonus price reached the pre-bonus price in Jiffy.

http://www.moneycontrol.com/news/business/ril-board-approves-11-bonus-issue_418275.html

@ Rajesh

:clapping::clapping::clapping:

The fall in GRASIM is rather unexpected.