The Journey of Reliance Industries: Past, Present, and Future of Your Shares

Imagine purchasing 200 shares of Reliance Industries (RIL) in the year 1999 when the share price was just 10 rupees. Today, your investment could be worth more than you might initially think. This article delves into the history of your shares, the company’s bonus distribution, and the potential value of your RIL holdings. We also explore the current market value of RIL and how your initial investment has grown over the years.

The Power of Bonus Shares

Reliance Industries, one of the largest and most successful conglomerates in India, has announced bonus shares multiple times over the years. For instance, between 1999 and 2019, RIL has distributed the bonus of 1:1 twice. Assuming the year you bought your shares was indeed 1999, let’s calculate how your initial 200 shares could have grown.

First, consider the bonus shares. Each 1:1 bonus means that for every share you owned, you received an additional share. Therefore, if you initially had 200 shares and received a 1:1 bonus, you would have 400 shares. If you received another 1:1 bonus, you would end up with 800 shares. This growth in your shareholding is a testament to the company’s performance and the value you have preserved or even multiplied.

Value and Holdings

Now, let’s calculate the current value of your shares. As of June 30, 2019, the share price of RIL was Rs. 1253.10. Your initial investment was 200 shares at Rs. 10, amounting to a total of Rs. 2000. Today, the value of those shares is 200 x 1253.10 Rs. 250,620. This represents a significant growth in your investment over the last two decades.

However, it's essential to note that the value of your shares is not just the result of the bonus distribution. You also received additional shares due to the split in 2006, post Dhirubhai Ambani’s demise. The split may have impacted the number of shares you currently hold, but the focus here is on the initial 200 shares and their growth.

Finding the Value

To find the exact value of your shares today, simply multiply the current share price by the number of shares you hold. With 800 shares at Rs. 1253.10 each, the total value would be 800 x 1253.10 Rs. 1002,480. This calculation excludes any dividends, which are a separate form of income from shareholding.

Conclusion

Your investment in RIL has indeed been a long-term winner. The combination of the bonus shares and the stock split has significantly amplified the value of your holding. As of June 30, 2019, your shares are worth more than you could have initially imagined. Congratulations on your foresight in choosing RIL as your long-term investment!

For more information on the current market value of RIL and other updates, continue to follow financial news and analysis. Happy investing!