The Indian Wire » Business » Reliance Rights Issue oversubscribed 1.1 times, two days ahead of closing day
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Reliance Rights Issue oversubscribed 1.1 times, two days ahead of closing day

Reliance Industries Limited (RIL) saw oversubscription of its massive Rs 53,124 crore worth of Rights Issue on July 1. The closing day for the sale or Rights Issue is July 3. Data on Stock Exchanges disclosed that the total bids for RIL’s Rights Issue Shares stood at 46.04 crores, overshooting the 42.26 crore shares on offer by 8.9 per cent.

Bombay Stock Exchange received applications for 44.85 crore Rights Issue Share while the National Stock Exchange received applications for 0.57 crore Rights Issue Shares. Non-ASBA bid quantity in Rights Issue Sales stood at 0.62 crore Rights Issue Shares. 

Over-subscription of Rights Issue Shares means that the Shareholders have applied for Shares which was more than their Entitlements. This indicates a strong sentiment of investors in RIL even at the time of COVID Pandemic. RIL’s Rights Entitlement (RE) has a premium value, liquidity and interest and on trading, they have never been traded below intrinsic during renunciation.

Through RIL-REs, Company’s Shareholders were able to generate Rs 9,500 crore on May 29 when online trading ended. On June 1, the RIL Shares closing price was at Rs 1520.45 on Bombay Stock Exchange (BSE).        

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