Reliance shares recover and go up 1.53% after opening nearly 50% lower, here's why

Reliance Industries Ltd shares have recovered and gone back 1.53% into the green after opening nearly 50% lower for today's trading session

Reliance Industries Ltd shares have recovered and gone back 1.53% into the green after suffering a fall of nearly 50% during today's trading session.

The logo of Reliance Industries is pictured in a stall at the Vibrant Gujarat Global Trade Show at Gandhinagar, India, January 17, 2019.(Amit Dave/Reuters)

Why did Reliance Industries shares open 50% lower?

Reliance Industries shares opened 49.61% lower than Friday’s closing price of ₹2,655.45 due to the company announcing a bonus issue of shares in a 1:1 ratio which means that shareholders will receive one additional bonus share for every share they own.

This bonus issue is one of the largest of its kind in India and it is RIL's sixth such issue. Its last bonus issue was in 2017, and the company's shares have grown 266% since.