On Monday, Reliance Industry partly paid shares issued under rights issue made a strong stock market debut, gained 8 percent to Rs 710.65 on the National Stock Exchange (NSE) in early morning trade.
The rights issue of RIL was subscribed to 1.6 times. From May 20 the subscription was open with a simultaneous rights entitlement (RIL LE) platform, which allowed shareholders to trade freely their entitlements on a stock exchange for the first time ever. At 09:28 am the shares were trading 7 percent higher at Rs 690 on the NSE and on BSE it was trading 7 percent at Rs 693 and climbed further to the end of the day at Rs 698, after hitting a high of Rs 710.65 in the infrastructure trade. On the first day of trade with transaction worth at Rs 600 crore on NSE over 87 lakh shares traded hands. The delivery rate for the shares was at 54.56 percent.
Under the rights issue at Rs 314.25 per share. The shares were issued under the Rs 53,124 crore rights issue about 442.6 million partly paid-up shares with a face value of Rs 2.5 per share were issued, which concluded on June 3. RIL issued shares at Rs 1,257 apiece in the rights issue but the entire payment has to be paid in three portions. In May 2021 the holders of the partly paid-up shares will have to pay the second installment of Rs 314.25 and in November 2021 the balance of Rs 628.5. ‘
On June 11 the fresh new shares were issued under the rights scheme. Following the rights issue, the promoter holding in RIL has risen slightly from 50.07 percent to 50.29 percent, as per data on BSE. Investors who have applied for rights shares can carry on to hold them if they are bullish on Reliance shares, said Deepak Jasani of HDFC securities.
Jio Platforms had raised Rs 1.04 trillion from leading global investors including Silver Lake, Mubadala, Facebook, ADIA, Vista Equity Partners, General Atlantic, TPG, KKR, and L Catterton since April 22, 2020, and with this investment. Also on the bourses’ shares of Reliance Industries closed higher. The stock added 1.65 percent to the end of the day at Rs 1,615.
