Goldman Sachs believes RIL’s Bonus announcement of 1:1 has come as a surprise to the Street, bonus share issuance is more of a positive technical trigger for the RIL stock, based on higher stock liquidity at lower ex-bonus share price and possibly some tax benefits from booking notional capital loss on ex-bonus price.
Kindly note that in the recent past, announcement of bonus share issuance has led to spikes in some stocks like Jindal Steel & Power and Indian Oil. Goldman Sachs Target for RIL Cum-Bonus is Rs 2,620.
Reliance Petroleum Shareholders will also get Bonus Shares.