Investing in 100 shares of Reliance Industries Limited (RIL) at ₹10 per share during its 1977 initial public offering (IPO) would have resulted in significant growth over the years, thanks to various bonus issues and stock splits. Here's a detailed breakdown:
1. Initial Investment (1977):
- Shares Purchased: 100
- Purchase Price per Share: ₹10
- Total Investment: ₹1,000
2. Bonus Issues and Stock Splits:
| Year | Action | Ratio | Shares Before | Shares After |
|---|---|---|---|---|
| 1980 | Bonus Issue | 1:1 | 100 | 200 |
| 1983 | Bonus Issue | 1:1 | 200 | 400 |
| 1997 | Bonus Issue | 1:1 | 400 | 800 |
| 2009 | Bonus Issue | 1:1 | 800 | 1,600 |
| 2017 | Bonus Issue | 1:1 | 1,600 | 3,200 |
| 2024 | Bonus Issue | 1:1 | 3,200 | 6,400 |
Note: The 2024 bonus issue was approved by RIL's board in September 2024. citeturn0news12
3. Current Value of Investment:
- Total Shares Held (as of March 21, 2025): 6,400
- Current Share Price: ₹1,279.30 citeturn0search6
- Total Investment Value: 6,400 shares × ₹1,279.30 = ₹8,188,352
4. Dividends:
RIL has consistently paid dividends over the years. For instance, in 2024, the company declared a dividend of ₹9 per share. With 6,400 shares, the dividend income for that year would be 6,400 × ₹9 = ₹57,600. Over the years, cumulative dividends would have contributed significantly to the total returns.
5. Summary:
An initial investment of ₹1,000 in 1977 has grown to approximately ₹8.19 million by March 2025, excluding the substantial dividend income received over the years. This remarkable growth underscores the long-term benefits of investing in companies with consistent performance and shareholder-friendly policies.
Investing in 100 shares of Reliance Industries Limited (RIL) at ₹10 per share during its 1977 initial public offering (IPO) would have resulted in significant growth over the years, thanks to various bonus issues and stock splits. Here's a detailed breakdown:
1. Initial Investment (1977):
- Shares Purchased: 100
- Purchase Price per Share: ₹10
- Total Investment: ₹1,000
2. Bonus Issues and Stock Splits:
| Year | Action | Ratio | Shares Before | Shares After |
|---|---|---|---|---|
| 1980 | Bonus Issue | 1:1 | 100 | 200 |
| 1983 | Bonus Issue | 1:1 | 200 | 400 |
| 1997 | Bonus Issue | 1:1 | 400 | 800 |
| 2009 | Bonus Issue | 1:1 | 800 | 1,600 |
| 2017 | Bonus Issue | 1:1 | 1,600 | 3,200 |
3. Current Value of Investment:
- Total Shares Held (as of March 21, 2025): 3,200
- Current Share Price: ₹1,279.30
- Total Investment Value: 3,200 shares × ₹1,279.30 = ₹4,093,760
4. Dividends:
RIL has consistently paid dividends over the years. Here's a summary of dividends declared since 1989-90:
| Financial Year | Dividend per Share (₹) |
|---|---|
| 2021-22 | 8.00 |
| 2020-21 | 7.00 |
| 2019-20 | 6.50 |
| 2018-19 | 6.50 |
| 2017-18 | 6.00 |
| 2016-17 | 11.00 |
| 2015-16 | 10.50 |
| 2014-15 | 10.00 |
| 2013-14 | 9.50 |
| 2012-13 | 9.00 |
| 2011-12 | 8.50 |
| 2010-11 | 8.00 |
| 2009-10 | 7.00 |
| 2008-09 | 13.00 |
| 2007-08 | 13.00 |
| 2006-07 | 11.00 |
| 2005-06 | 10.00 |
| 2004-05 | 7.50 |
| 2003-04 | 5.25 |
| 2002-03 | 5.00 |
| 2001-02 | 4.75 |
| 2000-01 | 4.25 |
| 1999-2000 | 4.00 |
| 1998-99 | 3.75 |
| 1997-98 | 3.50 |
| 1996-97 | 6.50 |
| 1995-96 | 6.00 |
| 1994-95 | 5.50 |
| 1993-94 | 5.10 |
| 1992-93 | 3.50 |
| 1991-92 | 3.00 |
| 1990-91 | 3.00 |
| 1989-90 | 3.00 |
Note: The dividend amounts have varied over the years, with the highest dividend per share being ₹13.00 in 2007-08 and 2008-09.
5. Summary:
An initial investment of ₹1,000 in 1977 has grown to approximately ₹4.09 million by March 2025, excluding the substantial dividend income received over the years. This remarkable growth underscores the long-term benefits of investing in companies with consistent performance and shareholder-friendly policies.
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