RIL partly paid-up shares make strong debut, surge 10% to Rs 710.65 on NSE

Reliance Industries' (RIL) partly-paid shares issued under rights issue made a strong stock market debut on Monday, surging 10 per cent to Rs 710.65 on the National Stock Exchange (NSE), in the early morning trade.

At 09:27 am, the shares were trading 7 per cent higher at Rs 693 on the NSE. On BSE, it was trading 7 per cent at Rs 692, after hitting a high of Rs 710.65 in the intra-day trade so far. A combined 1.7 million shares have changed hands on the NSE and BSE till the time of writing of this report.

About 442.6 million partly paid-up shares with face value of Rs 2.5 per share were issued under the rights issue at Rs 314.25 per share. The shares were issued under the Rs 53,124 crore rights issue, which concluded on June 3 and garnered 1.6 times subscription. RIL issued shares at Rs 1,257 apiece in the rights issue but the entire payment has to be paid in three tranches.

The holders of the partly-paid up shares will have to pay second installment of Rs 314.25 in May 2021 and the balance Rs 628.5 in November 2021. RIL’s partly-paid up shares will be converted to fully-paid up shares in November 2021. READ HERE

Meanwhile, RIL fully-paid shares were trading flat at Rs 1,583 on the BSE, as compared to 1 per cent decline in the Nifty 50 index. Over the weekend, the company announced the sale of 0.93 per cent equity stake in Jio Platforms to global alternative asset firm TPG on a fully diluted basis for Rs 4,546.8 crore. That apart, consumer-focused private equity firm L Catterton announced an investment of Rs 1,894.50 crore in Jio Platforms at an equity value of Rs 4.91 trillion and an enterprise value of Rs 5.16 trillion.

With this investment, Jio Platforms has raised Rs 1.04 trillion from leading global investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG and L Catterton since April 22, 2020, the company said.

Brokerage firm KRChoksey expects RIL stock to appreciate at 25 to 30 per cent compound annual growth rate (CAGR) over the next 3-5 years. RIL rights shares are becoming an attractive investments proposition as investing at an expected listed price of Rs 600, could give a return on investments (ROI) of more than 60 per cent when it appreciates to a projected price of Rs 1,000 in next 9-12 months against the projected price of Rs 2,000 fully paid up RIL, then.