Diwali Stock Market Blast: Free Reliance Share for Everyone? What it Means for Investors!

As Diwali celebrations approach, Reliance Industries has announced a surprise for its shareholders. In a move that's expected to boost investor sentiment, the Mukesh Ambani-led conglomerate has announced a 1:1 bonus issue. The record date for the bonus share issue has been set as October 28, 2024.

This means that shareholders who own Reliance Industries shares as of October 28, 2024, will receive one free share for every existing share they hold. The bonus issue is a way for Reliance Industries to reward its loyal shareholders and encourage more investors to participate in the company's growth story.

For many investors, this news is a Diwali bonanza. The bonus share issue is likely to increase the stock's liquidity and make it more attractive to potential investors. Existing shareholders will get to enjoy the benefits of increased ownership without having to pay anything extra.

The bonus issue is also a testament to Reliance Industries' robust financial health. With a strong track record of growth and profitability, the company is in a position to reward its shareholders with extra shares. This move is likely to boost investor confidence and lead to a positive impact on the stock price.

It's worth noting that the bonus share issue will not have any impact on the company's overall profitability or financial performance. It's simply a way for the company to reorganize its share capital and reward its loyal shareholders.

For shareholders, it's essential to understand the implications of the bonus share issue. They will receive additional shares, but the overall value of their investment will remain the same. The bonus shares will be added to their existing portfolio, but the cost price of their shares will be reduced.

In terms of tax implications, the bonus shares will be treated as if they were purchased at a zero cost. This means that when shareholders sell the bonus shares, they will be liable to pay capital gains tax on the entire amount received.

Overall, the 1:1 bonus share issue by Reliance Industries is a positive development for investors. It's a testament to the company's commitment to rewarding its loyal shareholders and a reflection of its strong financial health. As Diwali celebrations approach, this news is indeed a cause for celebration for many investors.