RIL-REs command 7% premium on Day 4
New Delhi, May 26 (IANS) At a time when marquee companies like Bharti Airtel and Kotak Mahindra Bank are selling their equity stakes at 5-6 per cent discount to their market price, RILs RE continues to command a premium over its intrinsic value.
On Tuesday, the fourth day of its online trading, the RIL-RE commanded a premium of Rs 12.05, a 7 per cent+ premium over the intrinsic value.
The volume-weighted average price (VWAP) of RIL-REs stood at Rs 183.75 on Tuesday. At the RIL VWAP of Rs 1,428.70, the intrinsic value of a RIL-RE works out to Rs 171.70 (difference over rights issue price of Rs 1,257)
In total, 1.57 crore RIL-REs changed hands on the NSE and BSE on Tuesday, with a total traded value of Rs 288.5 crore. Over Rs 1,290 crore of RIL-REs have traded on stock exchanges in the first four days of listing, notwithstanding the fact that it is listed in the trade-to-trade segment and buyers must take delivery of the REs.
Nearly 6.7 crore RIL-REs have traded on stock exchanges in the four trading sessions of listing. This is more than 15 per cent of the total REs issued (42.26 crore).
RIL-REs, the first rights entitlement ever traded on stock exchanges, have created immense wealth for RIL shareholders on debut.
Reliance Industries Ltd. Rights Entitlement (RE) trading began on Wednesday, simultaneously with the rights issue opening. RIL-REs are trading under the International Securities Identification Number (ISIN). The RIL rights issue is the first issue to use the online platform for trading rights entitlement (RE) as introduced by the Securities and Exchange Board of India (Sebi) earlier this year.
Every eligible shareholder holding shares on May 14, 2020 (record date) in demat mode, got Res credited to their demat accounts.
The Investors can buy/sell the REs on the secondary market platform of the stock exchanges in the same manner as any listed equity shares.
The on-market renunciation shall take place electronically on secondary market platform of BSE and NSE under automatic order matching mechanism and on ‘T+2 rolling settlement basis’, where ‘T’ refers to the date of trading. The transactions will be settled on trade-for-trade basis.
–IANS
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