RIL rights entitlement price surges 40% on strong investor demand
Mumbai: Shares of Reliance Industries – Rights Entitlement (RIL – RE) climbed 40% on debut to widen the spread between the market price and rights issue of each Reliance Industries share, telling potential long-term investors that they should buy into India’s most valuable company – especially because of the lower cash outgo immediately.
RIL-RE rose to ₹212 at the end of Wednesday’s trading on the NSE, which amounted to ₹32 higher than the spread between RIL market price of ₹1,437.40 and the rights issue price of ₹1,257. The rights issue is part of the sequenced deleveraging programme that seeks to extinguish about ₹1.60 lakh crore of net debt on the balance sheet.
About 32 million shares of RIL-RE were traded on NSE and BSE, compared with 27 million shares of the parent RIL. Delivery of RIL-RE is a must, which means 32 million rights out of 422.6 million offered were subscribed on the first day.
