Bonus Shares Information
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1. Reliance Industries Limited issued the first bonus of its shares in year 1983 in a ratio of 3:5.
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2. Ratio of 3:5 means that a shareholder will get 3 bonus shares for every 5 shares held by the shareholder as on record date.
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3. Reliance Industries Limited issued the second bonus of its shares in year 1997 in a ratio of 1:1.
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4. Reliance Industries Limited issued the third bonus of its shares in year 2009 in a ratio of 1:1.
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5. Reliance Industries Limited issued the fourth bonus of its shares in year 2017 in a ratio of 1:1.
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6. Let's calculate: If a shareholder had 500 shares in 1983, shareholder would have got 300 bonus shares. After first bonus issue, shareholder would have 800 shares (500 + 300) in year 1983.
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7. (Example) After issue of second bonus, shareholder would have 1600 shares (800 + 800) in the year 1997.
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8. (Example) After third bonus issue, shareholder would have 3200 shares (1600 + 1600) in the year 2009.
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9. (Example) After fourth bonus issue, shareholder would have 6400 shares (3200 + 3200) in year 2017.
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10. If the price of one Reliance Industries Limited share in year 1983 is taken around Rs 12 (assumption), 500 shares would have costed around Rs 6,000 in year 1983.
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11. One Reliance Industries Limited share in year 2024 is around Rs 2700.
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12. In year 2024, 6400 shares would have been valued at Rs 1,72,80,000 (Rs 2700 x 6400 shares).
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13. The investment of Rs 6,000 in the year 1983 would have been valued at Rs 1,72,80,000 in the year 2024, not counting the dividends received or new purchases. It's a CAGR of around 21% for 41 years.
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