Reliance Industries gains over 7% on fundraising plan

New Delhi: Shares of Reliance Industries (RIL) advanced over 7 per cent in Tuesday’s morning trade after the oil-to-telecom major on Monday said a board meeting has been scheduled this week to consider fundraising by issuing listed, secured/unsecured and redeemable non-convertible debentures on a private placement basis in one or more tranches.

In a regulatory filing, the company said, “...a meeting of the board of directors of the company is scheduled to be held on Thursday, April 2, 2020, to consider raising of funds by way of issuance of listed, secured / unsecured, redeemable non-convertible debentures on private placement basis, in one or more tranches/ series.”

Shares of Reliance Industries have fallen over 50 per cent from all-time high of Rs 1,617.80 as Covid-19 hammered global markets.

“RIL’s refining, petchem and retail businesses stand affected by: 1) travel restrictions that hit global oil demand, 2) reduction in trade activities and consumption, and 3) lock downs,” Emkay Global Financial Services said in a release.

The brokerage house added that the near-term GRM (gross refining margin) outlook is weak. Emkay expects $7-8 per barrel GRM for Reliance Industries.

While maintaining a ‘Buy’ call on RIL, Emkay recently slashed the target price by 25 per cent to Rs 1,310.

The shares of the company closed 7.76 per cent higher at Rs 1112.45 on BSE.