Reliance Group Stocks Fail To Gain After Bonus Share Issue, Growth Guidance
Most shares of Reliance group companies ended lower, with the Network 18 Media & Investments Ltd. leading the loss.
Shares of most companies belonging to the Reliance Industries Ltd. group failed to gain momentum on Friday, despite a bonus share issuance announcement and double growth guidance in the next five years in its annual general meeting on Thursday.
Most shares of Reliance Group companies ended lower, with Network 18 Media & Investments Ltd. leading the loss. The market cap of these companies decreased by Rs 14,594 crore to Rs 23.51 lakh crore.
The petrochemical to telecom business conglomerate announced it will consider bonus issues in a 1:1 ratio on Sept. 5 by capitalising on reserves. The news came just before Reliance Industries hosted its 47th annual general meeting on Thursday.
In the annual general meeting, Chairman and Managing Director Mukesh Ambani said the company's operating profit will double in the next five years on the back of growth in the telecom, renewable, and retail segments.
Intraday, Network18 Media & Investments' shares declined 5.93% to Rs 93.52 per share, hitting the lowest level since Aug. 14. They ended 4.07% lower at Rs 95.16 apiece.
The second top loser was Alok Industries with 2.88% intraday loss. The stock settled 1.80% down at Rs 27.30 apiece.
The flagship Reliance Industries was also the second top dragger in the benchmark NSE Nifty 50 on Friday, when it recorded its best winning streak since inception. The stock hit the highest level since July 19 in early trade, but erased all gains to settle 1.71% lower at Rs 1,193.55 per share.
Meanwhile, Sterling & Renewable Energy Ltd. and Just Dial Ltd. ended as the top gainer among its sister companies. The stocks ended 1.16% and 1.09% higher, respectively, on Friday.
