RIL Rights Entitlement shares ends at 7% premium over intrinsic value on May 29

The intrinsic value is the difference between Reliance Industries share price (Rs 1,460) and rights issue price (Rs 1,257).

Reliance Industries Rights Entitlement (RE) shares ended at a premium over the intrinsic value on May 29, the last day of trading for RIL RE.

Reliance Industries launched its biggest ever rights issue of Rs 53,125 crore on May 20, which is the first issue to be available for trading in the Rights Entitlement segment on the stock exchanges. Also it is the first time that shareholders received Rights Entitlement in their demat accounts which are available for trading.

RIL RE closed the last day at Rs 222 on the National Stock Exchange, a 7 percent premium over the intrinsic value (Rs 207.4).

The intrinsic value is the difference between Reliance Industries share price (Rs 1,464.40) on May 29 and rights issue price (Rs 1,257).

On May 29, RIL RE opened at Rs 220 against previous day's closing of Rs 229.75, and hit an intraday high of Rs 227.35 and low of Rs 210.

Today it traded with volumes of over 36 lakh shares which are valued at nearly Rs 79.42 crore.

Since the start of trading in Rights Entitlement, more than 8.2 crore RE shares have been traded so far which is over 19 percent of total issue size of 42.26 crore rights shares. On an average, the value of these traded shares stood at over Rs 1,615 crore.

So far RIL RE touched a record high of Rs 258.30 on May 21 and low of Rs 152 on May 20.

Reliance Industries' eligible shareholders will get 1 rights issue share for every 15 shares held.

As today was the last day of trading, the shareholder having rights entitlement in his/her account on June 2 will be eligible for partly paid-up rights shares and the payment of first installment of Rs 314.25 has to be done by June 3.

Shareholders who paid the first installment will get partly paid-up rights shares in their account by June 11 and these shares will be listed on exchanges on June 12.

The second installment of Rs 314.25 will be due in May 2021 and last installment of Rs 628.50 in November 2021.

Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd which publishes Moneycontrol.

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