RIL-Rights Entitlement surges 15% on day 2 to close at Rs 232

Source : IANS
Author : IANS
Last Updated: Fri, May 22nd, 2020, 11:01:27hrs
RIL-Rights Entitlement surges 15% on day 2 to close at Rs 232

New Delhi: The share price for Reliance Industries-Rights Entitlement (RIL-RE) on the National Stock Exchange rose nearly 15 per cent on Thursday to close at Rs 232.

On Thursday, the RIL-RE opened trading at Rs 212 and closed at Rs 232, a gain of 14.8 per cent, supported by strong underlying volume of Rs 283 crore. RIL-RE touched an intra-day high of Rs 258.30 per share.

The RIL-RE volume-weighted average price (VWAP) for the day stood at Rs 215.1 implying a 16.9 per cent gain over Wednesday's VWAP of Rs 184. The VWAP for RIL shares on Thursday was Rs 1,444, higher by of Rs 187 over the rights issue price of Rs 1,257.

Right Entitlements trading at a premium to the intrinsic value reflects continued strong interest, analysts said.

The total market value of all the Reliance Right Entitlements stood at Rs 9,805 crore.

RIL-Rights Entitlement (RE) trading began on Wednesday, May 20 simultaneously with the open of the rights issue.

RIL Rights Issue is the first issue to use the online platform for trading rights entitlement (RE) as introduced by the Securities and Exchange Board of India (SEBI) earlier this year

Every eligible shareholder holding shares on May 14, 2020 (Record Date) in demat mode, got Rights Entitlement (REs) credited in their Demat Account. The investors can sell the Rights Entitlements on the secondary market platform of the stock exchanges in the same manner as any listed equity shares.

On April 30, 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 June 3.