Reliance Industries shares jump over 5 pc after fund raising

Shares of Reliance Industries on Friday gained over 5 per cent after the company mopped up Rs 8,500 crore from the sale of non-convertible debentures (NCDs).

The scrip jumped 4.82 per cent to close the day at Rs 1,225.05 on the BSE. Intra-day, it climbed 5.23 per cent to Rs 1,229.90.

ON the NSE, it closed at Rs 1,229.90, a gain of 5.29 per cent.

In terms of volume, 5.59 lakh shares were traded on the BSE and about 1.52 crore on the NSE.

Reliance Industries has mopped up Rs 8,500 crore from the sale of non-convertible debentures, cashing in on the cheaper funds flooding the debt market that is starved of quality paper, priced it at 7.20 per cent.

The debt market is flushed with money after the Reserve Bank of India (RBI) opened a special repo operations called the targeted long term repo operations (TLTRO) on March 27, which offers banks funds at the repo rate which is currently pegged at 4.40 per cent.

Reliance Industries (RIL) offer gives a coupon of 280 bps premium on the repo rate.

RIL has mopped up Rs 8,500 crore from an NCD issue on Friday. The issue consists of a three-year fixed tenor tranche of Rs 4,000 crore offering 7.20 per cent coupon, and a Rs 4,500-crore floating rate tranche offering 7.2 per cent, which is a 280-bps spread over the repo rate, a market source told PTI.

The issue, which had hit the market on Thursday, has been mostly subscribed by State Bank of India, HDFC Bank, ICICI Bank and Axis Bank, the source added.