Mumbai: The de-materialised buying and selling of Reliance Industries Ltd – Rights Entitlement (RIL-RE) continued to attract sturdy demand on day 4 on Tuesday with a median premium of greater than 7 % over the intrinsic value.
While oil-to-telecom behemoth RIL’s Rs 53,125 crore mega rights concern opened for subscription by shareholders final week, it grew to become the primary concern the place eligible shareholders obtained the rights entitlements (REs) in demat, which may very well be traded on inventory exchanges.
RIL-REs on a median commanded a premium of Rs 12.07 on Tuesday, over 7 % premium over the intrinsic value, in line with inventory alternate knowledge.
At a time when marquee corporations like Bharti Airtel and Kotak Mahindra Bank are promoting their fairness stakes at 5-6 % low cost to their market worth, RIL’s RE continues to command a premium over its intrinsic value.
The quantity-weighted common worth (VWAP) of RIL-REs stood at Rs 183.75 on Tuesday.
RE’s intrinsic value is the distinction between RIL share worth and the rights concern worth of Rs 1,257.
At RIL’s VWAP of Rs 1,428.70, the RE’s intrinsic value works out to Rs 171.10 on Tuesday (the distinction between Rs 1,428.70 and Rights Issue worth of Rs 1,257).
In whole 1.57 crore RIL-REs modified fingers on NSE and BSE on Tuesday, with a traded value of Rs 288.5 crore, the information confirmed.
Over Rs 1,290 crore of RIL-REs have traded on inventory exchanges within the first 4 days of itemizing, however the truth that it’s listed within the Trade-to-Trade section and consumers should take supply of the REs.
Nearly 6.7 crore RIL-REs have traded on inventory exchanges within the 4 buying and selling periods of itemizing. This is greater than 15 % of the entire REs issued (42.26 crore).
RIL-REs is the primary rights entitlement ever traded on inventory exchanges.
In the rights concern, the corporate will provide one share for each 15 shares held at Rs 1,257 per share.
This would be the first concern the place the rights entitlements shall be credited to eligible shareholders’ demat accounts and shall be freely tradable.
(Disclaimer: Reliance Industries Ltd. is the only real beneficiary of Independent Media Trust which controls Community18 Media & Investments Ltd which publishes Firstpost)