Reliance slumps 5% after treasury stock sale

Reliance slumped nearly 5% today after its subsidiary firm sold 10.5 million equity shares in a block deal. The stock touched a low of Rs 2,070 and finally ended with a loss of 4.5% at Rs 2,086. The counter witnessed a volume of 12.94 million shares as against its two week daily average trade of 949,282 shares on the BSE.

Petroleum Trust, a special purpose vehicle (SPV) created for RIL’s holding in the earlier Reliance Petroleum today sold 10.5 million shares of teh company at an average price of Rs 2,125 per share, thus realising Rs 3,188 crore.
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(Updated at 1032 hrs)

Reliance has slipped in early trades on plans of sale of Rs 4,250 crore of treasury stock.

 

The stock opened at Rs 2,170. Thereafter it slipped to a low of Rs 2,121  and is now down 2.6% at Rs 2,126. The counter has witnessed trades 9.93 million shares

Reliance plans to offload a part of its treasury stock, held through the Petroleum Trust, which is controlled by the promoters. The Trust has offered to sell about 20 million shares in RIL at Rs 2,125 a piece.