Partly Paid Shares Relisted, Reliance Rights Issue Investors Sitting On 1.5 Times Gain
Shareholders who participated in Reliance Industries Ltd.’s rights issue last year have seen their investment jump 1.5 times.
Reliance's partly paid shares were relisted at Rs 1,570 apiece on Thursday. They were delisted at Rs 982 on May 10.
A partly paid share trades at a discount to the fully paid stock as an investor has to pay more to fully acquire it. That discount has narrowed to Rs 629 apiece for Reliance’s partly paid shares.
Since listing in June 2020, these partly paid shares have surged 127% compared with a 41% increase in the RIL shares.
Reliance issued 42.27 crore shares at Rs 1,257 apiece last year as part of its rights issue to mop up Rs 53,124 crore. The payment included:
- Rs 314.25 (comprising Rs 2.5 face value) at the time of allotment.
- Rs 314.25 (comprising Rs 2.5 face value) by May 31, 2021.
- The final payment (Rs 628.5 including a face value of Rs 5) is due in November.
Investors who participated in the rights issue are already sitting on a profit of 149%. That’s because while they have paid Rs 628.5 apiece so far, the current price is more than Rs 1,566.
An investor buying a partly paid share from the market at current price of Rs 1,566.5 apiece will have to pay another Rs 628.50 to get a fully paid share in November. A total cost of Rs 2,197, close to the current price of Rs 2,195.70 for a fully paid share.
According to Reliance’s exchange filing:
- The aggregate amount payable towards the first call (in May) was Rs 13,281 crore.
- The company has received Rs 13,151 crore, about 99% of the amount due amount.
- Reliance has credited 41.78 crore equity shares to investors on receiving the first call amount.