RIL stock hits all time high of INR 1,624 defying naysayers

New Delhi, June 8 (IANS): As the stock price of Reliance Industries Limited (RIL) hit an all-time high of INR 1,624 on the BSE, the RIL story has defied experts and naysayers who cast doubts on the share’s instrinsic value and commented that the price will fall post rights issue that closed on June 3.

The RIL all-time high came on Monday, a day after it announced 1.16 per cent stake sale in Jio Platforms, to Abu Dhabi Investment Authority (ADIA) for INR 5,683 crore. Since the countrywide lockdown was announced on March 24, Reliance has generated 66.5 per cent returns for its shareholders, more than double the 28.6 per cent returns generated by the benchmark Nifty-50.

The all-time high of RIL has defied defied experts and naysayers and continues to hit new record highs. RIL share price was adjusted for the rights issue ahead of the record date of May 14, 2020. The price had corrected nearly 4 per cent as the share went ex-rights. In the F&O segment, RIL’s lot size was revised to 505 from 500 earlier.

RIL closed India’s largest rights Issue with 1.6 times oversubscription with strong demand from the non-promoter category. The public portion of the rights issue was subscribed 1.22 times in last three days, Mubadala, the Abu Dhabi-based sovereign investor, Silver Lake and its co-investors, and Abu Dhabi Investment Authority agreed to invest INR 19,324 crore in Jio Platforms in three separate deals.

This took the total fund raise by Jio Platforms to INR 97,886 crore in less than 7 weeks. Reliance first announced the rights issue on April 30, along with the financial results for Q4 and FY20. The issue, which closed in 34 days with investor commitments exceeding INR 84,000 crore in these times, was the largest issue globally among non-financial companies in the last 10 years. RIL share gained 7.8 per cent in these 34 days, as against 1.7 per cent rise in Nifty-50.