Reliance Industries forayed into new materials business by acquiring assets of Kemrock Industries.
Reliance Industries' shares gained more than 1 percent in morning trade Thursday to hit a fresh record high of Rs 832.70 after adjusting for bonus share issue. It has gained more than 8 percent in seven consecutive sessions.
The company announced bonus issue in the proportion of one bonus share for every one share held.
As per bonus share issue, the stock traded at half the price of its previous closing of Rs 1,645.40.
Reliance Industries has fixed September 9 as the record date for the purpose of determining members eligible for bonus equity shares of the company.
The board of directors had recommended issue of bonus shares to the members of the company by capitalisation of its reserves on July 21.
Meanwhile, Reliance Industries forayed into new materials business by acquiring assets of Kemrock Industries.
"Reliance participated in an on-line e-bidding process held recently by Allahabad Bank being leader of the consortium of 11 banks to sell / dispose off assets of 'Kemrock Industries & Exports Limited' of Vadodara (Gujarat) and has been declared as the winner in the said bid," the petrochemical major said in its filing.
This participation is a part of Reliance’s efforts to enter the Composites business and establish a leadership position in this large and growing market in India.
Composites are used in a variety of applications and industries such as renewable energy, mass transportation, infrastructure and a host of other industrial products.
The assets will pave the way for Reliance to foray into new materials (composites and carbon fibre) and further strengthen its petrochemicals business portfolio, the company said.
Global research firm CLSA on Wednesday maintained buy rating on Reliance share with a target price of Rs 1,920 per share. It cites several positives like a possible cut in interconnect usage charge (IUC), Jio phone and gradual reduction in discounted tariffs.
At 09:46 hours IST, the stock price was quoting at Rs 825.45, up Rs 3.15, or 0.38 percent on the BSE.Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.