Mumbai, May 20 (SocialNews.XYZ) The share price for Reliance Industries-Rights Entitlement (RIL-RE) on the National Stock Exchange (NSE) surged 39.6 per cent on Wednesday to settle at the day's high of Rs 212.
The previous close of RIL-RE, Rs 151.90, is the difference between the previous closing price of Reliance Industries at Rs 1,408.9 and the rights issue price of Rs 1,257 per share.
It had opened at Rs 158.05 and touched an intra-day low of Rs 152.
Analysts said that the trade volume indicated high demand for the rights entitlement. Trading volumes of RIL-RE stood at over 2.91 crore shares on the NSE.
Jyoti Roy, DVP Equity Strategist, Angel Broking, said: "We are recommending investors to subscribe to the rights issue of Reliance Industries Ltd. as we are positive on the future prospects of the company on the back of strong traction in digital and retail business."
He noted that RIL has built up a dominant position in both the telecom and retail business where it is the marker leader and the telecom and retail business will be key growth drivers for the company over the next few years while the company's foray into e-commerce through it's JioMart platform will be a value creator for the shareholders in the long run.
RIL digital business, Jio Platforms has attracted investments from marquee investors like Facebook, Silver Lake Partners, General Atlantic and Vista Equity Partners of Rs 67,195 cr, which will not only help the company pay down its debt but also inspire confidence in the company's strategy to transform from a brick and mortar company into a digital play, Roy said.
"We currently have a BUY rating on the stock with a SOTP based target price of Rs 1,748," he said.
On April 30, the RIL Board approved the rights issue of up to Rs 53,125 crore at Rs 1,257 per share, with the share ratio of 1:15. The closing date of the issue is June 3.
Source: IANS
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