De-materialised trading of Reliance Industries Ltd - Rights Entitlement (RIL-RE) continued to draw strong demand on day-two on the stock exchanges on Thursday, rising by nearly 28 per cent in intra-day trading before closing with a gain of 15.6 per cent.
Oil-to-telecom behemoth Reliance Industries' Rs 53,125 crore mega rights issue opened for subscription by shareholders on Wednesday.
It became the first issue where eligible shareholders got the rights entitlements (REs) in demat, which could be traded on stock exchanges.
RIL-REs made an intra-day high of Rs 258.30 a spurt of 27.8 per cent from the previous close, according to stock exchange data.
On Thursday, RIL-RE opened trading at Rs 212 and closed at Rs 233.60 on NSE a gain of 15.6 per cent, supported by strong underlying volume (13.1 million REs traded).
The RIL-RE volume-weighted average price (VWAP) for the day stood at Rs 215.1, implying a 16.9 per cent gain over Wednesday's of Rs 184.
VWAP for RIL share on Thursday was Rs 1,444 the intrinsic difference of Rs 187 over rights issue price (VWAP of Rs 1,444 Rights Issue price of Rs 1,257).
REs trading at a premium to the intrinsic value reflects continued strong interest.
The total market value of all the Reliance REs stood at Rs 9,805 crore.
The company will offer one share for every 15 shares held at Rs 1,257 per share.
RIL is issuing new shares to existing shareholders at a price lower than its current market price. Also, an eligible shareholder will get 18 months to pay for the new shares over three installments.
The eligibility date to get these shares on preferred terms was May 14.
This will be the first issue where the rights entitlements will be credited to eligible shareholders' demat accounts and will be freely tradable.
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