RIL-RE volumes jump to record 3.4 crore; price spurts 23%

Mumbai: The de-materialised trading of Reliance Industries-Rights Entitlement (RIL-RE) on Thursday recorded the highest daily volume and price rising by over 23 per cent, according to stock exchange data.

On the penultimate day of trading. RIL-RE trading volumes spurted to 3.44 crore on Thursday, the highest daily volume since REs started trading from May 20.

On Thursday, the RIL-RE volumes surpassed the volumes in Reliance Industries' scrip, 1.92 crore RIL shares were traded on the National Stock Exchange (NSE) and the BSE.

The volume spurt in RIL-RE was supported with a jump in price. The volume-weighted average price (VWAP) of REs stood at Rs 221.51 on Thursday, up 23.2 per cent. This was the highest daily gain posted by RIL-RE so far.

Along with volumes and price, the premium RIL-REs commanded over their intrinsic value also gained on Thursday.

At the closing price of RIL's scrip at Rs 1,472.25, the intrinsic value of RIL-RE stood at Rs 215.25 (the difference over rights issue price of Rs 1,257). Considering RE's closing price of Rs 229.8, the premium stood at Rs 14.50 -- higher than Rs 12.95 of Wednesday.

Throughout all the six trading sessions, the RIL-REs have consistently traded at a marked premium to their intrinsic value, indicating strong buyer interest in the Right Entitlements.

With just one more day to go for online RE trading, 11.1 crore REs have changed hands on the stock exchanges so far. The cumulative value of RE trades crossed Rs 2,150 crore. The RIL-REs closed at Rs 229.8 on the NSE, up 14 per cent over the previous day's closing price, after touching a high of Rs 235 intra-day.

Reliance Industries Ltd-Rights Entitlement trading began on May 20 simultaneously with rights issue open. Friday will be the last day for buying or selling the rights entitlements on the NSE and the BSE.

While oil-to-telecom behemoth RIL's Rs 53,125-crore mega rights issue opened for subscription by shareholders last week, it has become the first issue where eligible shareholders got the rights entitlements (REs) in demat, which could be traded on stock exchanges.

In the rights issue, the company will offer one share for every 15 shares held at Rs 1,257 per share.

This will be the first issue where the rights entitlements will be credited to eligible shareholders' demat accounts and will be freely tradable.