- RIL shares increased by more than 2 percent to reach a fresh all-time high of Rs 1,648.55 on NSE. Its market capitalization for the first time crossed the Rs 11 lakh crore mark.
RIL shares increased by more than 2 percent to reach a fresh all-time high of Rs 1,648.55 on NSE. The market capitalization of RIL for the first time crossed the Rs 11 lakh crore mark.
The partially paid rights shares made a strong debut, listed separately under the RELIANCEPP symbol, which began trading at Rs 690, briefly touching the upper circuit of Rs 710.65 and closing at Rs 700.1 on NSE with 8 percent gains.
The partly paid-up shares themselves generated market value over Rs 29,500 crore. RIL ‘s overall market capitalization currently stands at an incredible Rs 10.51 lakh crore, in addition to the market capitalization of fully paid-up shares at Rs 10.22 lakh crore.
The partially paid-up shares, for which shareholders paid Rs 314.25 each, generated returns of 122.8 percent within a fortnight to become one of the best investments in COVID times by far.
Even the investors who bought the right entitlements for Rs 220 apiece in online trading and then paid Rs 314.25 to the company for the rights shares made more than 30 percent gain on their investment within a fortnight.
The partly paid-up share of the RIL traded throughout their debut session at a premium to its intrinsic valuation.
The shares still need owners to pay Rs 942.75 to become fully paid-up shares (the issue price of Rs 1257 — Rs 314.25 already paid). Their intrinsic value is the current market price of the fully disbursed share of RIL, reduced by the amount to be paid (or Rs 942.75).
Under the rights Issue, Reliance issued 42.26 crore new shares at Rs 1257 each to existing shareholders in a 1:15 ratio. The investors had to pay 25 percent or Rs 314.25 per share at the time of application and will need to pay another 25% or Rs 314.25 in May 2021 and remaining 50 percent or Rs 628.5 in November 2021, when the shares will turn into fully paid-up.
RIL scrip traded on Monday at volume-weight adjusted price (VWAP) of Rs 1,593.39, putting the intrinsic value of the partly paid shares at Rs 650.64. The VWAP of the partly paid shares, against this, stood at Rs 688.73 — or an average premium of Rs 38.09 or 5.9 percent.
RIL ‘s Rs 53,124 crore rights issue can be listed as being India’s largest-ever rights issue. It was also the largest issue of rights in the world in the last 10 years by a non-financial institution.
It was revealed on 30 April 2020 and the sale of rights shares took place on 15 June — a period of just 45 days, defying the COVID-induced lockdown constraints.
Despite its magnitude and challenging economic outlook, RIL’s rights Issue closed with 59 percent oversubscription — a commitment of over Rs 84,000 crore from investors.
The issue generated interest globally with FPIs using the opportunity to increase their investment in the company. The number of FPIs holding RIL shares increased to 1,395 on June 11, 2020, from 1,318 on March 31, 2020. Now they together hold 24.15 percent in RIL, up from 23.48 percent at the end of March 2020.
RIL completed the allotment of partly paid-up shares to the Demat accounts of its shareholders on June 11.
On the increased post-issue equity of 676.2 crore equity shares, the interest of the promoter group is now up from 48.87 percent at the end of March 2020 to 49.14 percent. This underscores the confidence and devotion of the promoters towards the future growth of the company.
On the increased post-issue equity of 676.2 crore equity shares, the interest of the promoter group is now up from 48.87 percent at the end of March 2020 to 49.14 percent. This underscores the confidence and devotion of the promoters towards the future growth of the company.
