RIL corrects on profit booking

Reliance Industries (RIL) slumped 6.12% to Rs 1480.25 on profit booking after a recent steep surge.

Shares of the oil-to-telecom conglomerate added 9.86% in the past five sessions to end at Rs 1,576.75 in yesterday's session, from its recent closing low of Rs 1435.40 recorded on 4 May 2020.

RIL surged 78.49% to end at Rs 1,576.75 on Monday (11 May), from its closing of Rs 883.85 on 23 March 2020. During the same period, the benchmark S&P BSE Sensex gained 21.47%.

On the BSE, the counter clocked a volume of 28.33 lakh shares as against its average trading volume of 46.93 lakh shares in the past one quarter.

On the NSE, the counter clocked a volume of 4.60 crore shares as against its average trading volume of 2.09 crore shares in the past one quarter.

RIL has fixed Thursday, 14 May 2020 as the record date for the Rs 53,124 crore rights issue. The company plans to issue 42.26 crore shares at a price of Rs 1,257 each, a discount of 15.08% to its current market price. The company will allot 1 rights equity share for every 15 equity shares held by the eligible equity shareholders of the company on the record date. The promoters will participate in, and are committed to, the success of the rights issue, the company had earlier said.

If the shareholding of any eligible equity shareholder is less than 15 equity shares or is not in the multiple of 15 equity shares, the fractional entitlement of such a shareholder shall be ignored for the computation of the rights entitlement.

However, the eligible shareholders whose fractional entitlements are being ignored, will be given preferential consideration for the allotment of 1 additional rights equity share each if they apply for additional rights equity shares over and above their rights entitlement, if any, subject to availability of additional rights equity shares in this rights issue, RIL said in a regulatory filing made on 11 May 2020.

On a consolidated basis, the company's net profit fell 38.74% to Rs 6,348 crore on 2.5% decline in revenue to Rs 151,209 crore in Q4 March 2020 over Q4 March 2019.

Reliance Industries is India's largest private sector company. RIL's activities span hydrocarbon exploration and production, petroleum refining and marketing, telecom and digital services.

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