The Evolution of Reliance Industries Limited Shares Over Three Decades
Have you ever wondered what the current value of shares would be if someone had purchased 20 shares of Reliance Industries Limited (RIL) in 1987? Well, let's delve into the fascinating journey of RIL and explore how these shares have evolved over the years!
Purchase of Initial Shares in 1987
Imagine allotting 20 shares of RIL back in 1987. Considering the massive corporate actions, including stock splits and bonus issues since that time, the number and value of these shares have dramatically transformed. Surprisingly, this journey is not just about numbers but also reflects a period marked by significant corporate achievements and strategic demergers.
Key Corporate Actions and Share Evolution
Let's break down the journey for an investor who purchased 20 shares in 1987:
Stock Splits and Bonuses
RIL, under the visionary leadership of Dhirubhai Ambani, has undergone numerous stock splits and issued bonus shares. Significant among these have been the stock splits and bonus issues that have significantly increased the number of shares. For example:
Stock Split: RIL has on numerous occasions split its stock, thereby increasing the number of shares held by investors. Bonus Shares: Bonus shares were issued to investors, further increasing the number of shares they owned.Demergers and Mergers
To understand the current value and number of shares, we must also consider the spin-offs and mergers that have reshaped the company's portfolio. Notably, the demergers and mergers have played a crucial role in the investor's shareholding:
RIL Demergers: Upon the demerger, the investor, initially holding 20 shares of RIL, received shares of Ultratech Cement among others. However, some of these shares have no significant value due to poor management. Mergers: On the other hand, RIL also engaged in mergers, one of which resulted in the consolidation of Reliance Petroleum into RIL, further enhancing the total share count.Actual Shareholder Experience
A concrete example is provided by Gangani D.G., who, through various corporate actions, has transformed those initial 20 shares:
G Series Debentures: 220 shares converted from G series debentures issued in 1987. Bonus Issues: The investor benefited from multiple bonus issues, significantly increasing the share count. L T Rights: Additional shares from L T rights issues have further contributed to the overall shareholding.Calculating Current Value and Shares
To determine the current value, we need to multiply the total number of shares by the current market price. As of August 2023, the RIL stock price has been around 2500, but actual figures are subject to market fluctuations. Here's a simplified calculation for our example:
Assumption: The original 20 shares are now 200 shares due to corporate actions.
Current Price: ~2500 (hypothetical average).
Calculation:
Current Value Total Shares x Current Price 200 x 2500 500,000
Thus, the current value of those initially purchased 20 shares of RIL could be anywhere around 500,000, based on the hypothetical average price as of August 2023.
Conclusion
The journey of 20 shares of RIL from 1987 showcases the power of corporate actions and market dynamics. The transformation from 20 shares to potentially 200 shares, and the significant value increase to around 500,000 reflects how stock splits, bonus issues, and mergers have shaped the company's shareholding over the years. For a precise calculation, detailed stock split history and current market prices must be verified.