New Reliance Industries' partly paid shares commence trading on NSE

New iteration of Reliance Industries (RIL) partly-paid shares commenced trading on Thursday. They ended at Rs 1,555 almost at par with fully-paid shares, which ended at Rs 2,183, after adding the final call payment of Rs 628.5 per share.

Trading in the earlier version of RIL PP shares was suspended on May 11. Holders of this security had to pay Rs 314.25 apiece to RIL as the first call payment between May 17 and May 31.

On Wednesday, RIL had said it has received Rs 13,151 crore, representing around 99 per cent of the amount due on first call.

RIL had issued 422.6 million partly paid shares as part of its Rs 53,124-crore rights issue programme in June 2020. The company had collected only a fourth of the payment initially. Another 25 per cent has now been collected, while the balance 50 per cent will be collected in November.

Those holding RIL PP shares will have to pay Rs 628.5 per unit in November after which all the shares will get converted into regular shares.

“We don’t expect RIL PP to trade at more than Rs 10 per share premium. If the RIL PP jumps to higher premium than it should be used as an opportunity for long term holders to switch to ordinary shares,” said Abhilash Pagaria, analyst at Edelweiss Alternative Research in a note to clients.

Experts said the partly-paid shares can be used to leverage exposure.

“Those wanting to invest in RIL can take the partly-paid route to get more bang for the buck. You don’t have to pay any premium. Instead get to buy 30 per cent more with the same amount. Or the 30 per cent can be saved and invested elsewhere,” said an analyst.

However, one has to be careful as if the shares of RIL fall from current levels, there losses could be more for PP holders, he added.