Insta
Share Price Of Reliance Industries’ Rights Issue Sees High Demand, Surges By 39.6 Per Cent
Reliance Industaries Chairman Mukesh Ambani (Manoj Patil/Hindustan Times via Getty Images)
The share price for Reliance Industries-Rights Entitlement (RIL-RE) on the National Stock Exchange (NSE) surged 39.6 per cent on Wednesday to settle at the day's high of Rs 212.
The previous close of RIL-RE, Rs 151.90, is the difference between the previous closing price of Reliance Industries at Rs 1,408.9 and the rights issue price of Rs 1,257 per share.
It had opened at Rs 158.05 and touched an intra-day low of Rs 152.
Analysts said that the trade volume indicated high demand for the rights entitlement. Trading volumes of RIL-RE stood at over 2.91 crore shares on the NSE.
Jyoti Roy, DVP Equity Strategist, Angel Broking, said: "We are recommending investors to subscribe to the rights issue of Reliance Industries Ltd. as we are positive on the future prospects of the company on the back of strong traction in digital and retail business."
He noted that RIL has built up a dominant position in both the telecom and retail business where it is the marker leader and the telecom and retail business will be key growth drivers for the company over the next few years while the company's foray into e-commerce through it's JioMart platform will be a value creator for the shareholders in the long run.
RIL digital business, Jio Platforms has attracted investments from marquee investors like Facebook, Silver Lake Partners, General Atlantic and Vista Equity Partners of Rs 67,195 crore, which will not only help the company pay down its debt but also inspire confidence in the company''s strategy to transform from a brick and mortar company into a digital play, Roy said.
"We currently have a BUY rating on the stock with a SOTP based target price of Rs 1,748," he said.
On 30 April, the RIL Board approved the rights issue of up to Rs 53,125 crore at Rs 1,257 per share, with the share ratio of 1:15. The closing date of the issue is 3 June.
The story has been published via a syndicated feed, only the headline has been changed
Support Swarajya's 50 Ground Reports Project & Sponsor A Story
Every general election Swarajya does a 50 ground reports project.
Aimed only at serious readers and those who appreciate the nuances of political undercurrents, the project provides a sense of India's electoral landscape. As you know, these reports are produced after considerable investment of travel, time and effort on the ground.
This time too we've kicked off the project in style and have covered over 30 constituencies already. If you're someone who appreciates such work and have enjoyed our coverage please consider sponsoring a ground report for just Rs 2999 to Rs 19,999 - it goes a long way in helping us produce more quality reportage.
You can also back this project by becoming a subscriber for as little as Rs 999 - so do click on this links and choose a plan that suits you and back us.
Click below to contribute.
Latest
