De-materialised trading of Reliance Industries Ltd – Rights Entitlement (RIL – RE) – made a strong debut on the stock exchanges on Wednesday, rising by nearly 40 per cent to settle at Rs 212. Oil-to-telecom behemoth Reliance Industries’ Rs 53,125 crore mega rights issue opened for subscription by shareholders on Wednesday. It became the first issue where eligible shareholders got the rights entitlements (REs) in demat, which could be traded on stock exchanges. RIL-RE closed at Rs 212 on the National Stock Exchange (NSE) on Wednesday, 39.5 per cent higher over the previous closing price of Rs 151.90. The Rights Entitlement share price (closing price as of May 19) is a difference between the previous closing price of RIL at Rs 1,408.9 and the rights issue price of Rs 1,257 per share.
According to market data, online trading in RIL’s REs reached high volumes with buyers outpacing sellers and the price soaring. RIL-RE share price jumped nearly 40 per cent after opening at Rs 158.05. Its trading volume was much higher than RIL. Trading volumes of RIL-RE stood at over 2.91 crore shares, while RIL volume was 2.55 crore shares on the NSE.
At market close, the RE traded at Rs 212 and RIL share traded at Rs 1,437.40 – which is at a differential of Rs 180.4 over Rs 1,257. The company will offer one share for every 15 shares held at Rs 1,257 per share.
RIL is issuing new shares to existing shareholders at a price lower than its current market price. Also, an eligible shareholder will get 18 months to pay for the new shares over three installments.
The eligibility date to get these shares on preferred terms was May 14.
This will be the first issue where the Rights Entitlements will be credited to eligible shareholders’ demat accounts and will be freely tradable.