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Reliance Industries partly paid-up shares locked in upper circuit

The partly paid-up equity shares have given more than 80 percent return this week if we compare with intrinsic value.

June 19, 2020 / 05:32 PM IST
 
 
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Reliance Industries partly paid up equity shares were locked in 10 percent upper circuit on June 19 after the company announced it had become net debt free well ahead of its target of March 31, 2021.

The stock closed at Rs 812.90, up Rs 73.90, or 10 percent, with a volume of more than 49 lakh shares. It has given more than 80 percent return this week if we compare with intrinsic value.

The intrinsic value is Reliance Industries' share price divided by 4 as eligible shareholders paid only a fourth of the rights issue price (Rs 314.25 out of Rs 1,257 per share). The second instalment of Rs 314.25 will be paid in May 2021 and the rest Rs 628.50 will be paid in November 2021.

The RIL Rights Issue, subscribed 1.59 times during May 20-June 3, was not only the largest ever in India but also the biggest in the world by a non-financial entity in 10 years.

Reliance Industries, too, consistently surged and the record-high figure has been changing since afternoon trade.

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RIL share closed at Rs 1,759.50, up Rs 103.25 or 6.23 percent, with a market cap of Rs 11,15,418.03 crore after hitting an all-time high of Rs 1,788.60.

RIL is the first listed entity to cross the market capitalisation of Rs 11 lakh crore and has more than doubled its investor wealth since March 23.

With the investments of Rs 1,15,693.95 crore in Jio Platforms by global investors, rights issue of Rs 53,124.20 crore and the stake sale to BP in the petro-retail JV, billionaire Mukesh Ambani-owned conglomerate has raised more than Rs 1.75 lakh crore and became net-debt free well before the deadline of March 31, 2021.

The company's net debt was Rs 1,61,035 crore as on March 31, 2020.

At the 42nd AGM of Reliance Industries on August 12, 2019,  Chairman Mukesh Ambani assured the shareholders about his roadmap for Reliance becoming a net-debt free company before March 31, 2021. "We have a very clear roadmap to becoming a zero net debt company within the next 18 months that is by March 31, 2021," he had said

Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd which publishes Moneycontrol.
Moneycontrol News
first published: Jun 19, 2020 03:46 pm

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