What is the Current Value of Reliance Petroleum Limited Shares Bought in 1998?

Have you ever purchased Reliance Petroleum Limited (RPL) shares in 1998 and forgot about them? If so, you might be wondering about their current value. Let's dive into the details of what happened to RPL shares and how their valuation has evolved over the years.

What Happened to Reliance Petroleum Limited?

Reliance Petroleum Limited (RPL) went through several changes over the years, including a company dissolution and merger. In 2009, RPL merged with Reliance Industries Limited (RIL) at a 16:1 ratio. As a result, any remaining shares of RPL were converted into Reliance Industries shares.

The Current Shareholding Status

According to your demat account, you should have around 18 shares of Reliance Industries (RIL) instead of the 300 RPL shares you originally bought. This conversion was done as part of the 16:1 merger ratio. Therefore, your current shareholding value is roughly Rs 22,500.

Current Value Calculation

Given that the current share price of RIL is around Rs 1,200, let's calculate the current value of your shares. Here's the equation:

RPL share count before merge: 300 Post-merge share count: 300 / 16 18.75 shares Current RIL price: Rs 1,200 Current value of RIL shares: 18.75 * 1200 Rs 22,500

However, considering the recent bonus shares issued by RIL in 2009 and 2017 at a 1:1 ratio, the actual share count would be:

Post-2009 bonus shares: 18.75 * 2 37.5 shares Post-2017 bonus shares: 37.5 * 2 75 shares

Re-calculating with 75 shares at Rs 1,200 per share, the current value would be:

75 shares * Rs 1,200 Rs 90,000

Dematerialization and Selling the Shares

If you are receiving regular dividends, it is likely that your shares have already been dematerialized. However, if you are not receiving dividends and your shares are in physical form, you need to convert them to dematerialized form. This can be done by contacting a broker and filling out a Dematerialization Request Form (DRF).

The process may take 1 to 2 months. After the shares are reflected in your demat account, you can sell them. The dematerialization deadline is 5th December 2018. After this date, physical shares will no longer be transferable but can still be dematerialized.

For further assistance, please get in touch with Reliance's registrar, Karvy Compushare Pvt Ltd in Hyderabad.

By following these steps, you can ensure that you maximize the value of the shares you originally purchased in 1998.