Shares of Reliance Industries – Rights Entitlement (RIL-REL) moved higher by up to 34 per cent to Rs 211.60 level on the National Stock Exchange (NSE) on Wednesday on the first day of its trading. The stock opened at Rs 158.05 and hit an intra-day low of Rs 152 on the exchange so far.
At 12:25 pm, RIL-REL was trading 29 per cent higher at Rs 195.05 with around 22.82 million equity shares changing hands on the NSE, the exchange data shows.
“The REs for renunciation of RIL are permitted on the exchange with effect from the date Wednesday, May 20, 2020. The shares shall be settled on T+2 rolling settlement basis and the trades shall be settled on trade-for-trade basis. The REs shall be tradable in dematerialized form only,” the exchanges said in their respective notices.
The platform allows eligible shareholders to renunciate their shares for a price. Until now, shareholders, who didn’t wish to apply, had to let their RE lapse or had to transfer it for free. The trading in RE will open, along with the rights issue, on May 20 and close on May 29. Meanwhile, the rights issue will remain open until June 3.
“Given the diverse shareholding in RIL, one can expect the rights entitlement trading platform to be fairly liquid. The trading will happen as it does in any other share. However, participants will not be allowed to trade intra-day,” said Mohit Mehra, business analyst at Zerodha. CLICK HERE TO READ FULL REPORT.At Rs 53,125 crore, RIL’s rights issue is India’s biggest equity fundraising. RIL shareholders will be able to apply for one share in the rights issue for every 15 shares held as on May 14.
