Reliance Industries-Rights Entitlement: First Rights Entitlement That Trades On Exchanges; Soars 39%

Reliance Industries - Rights Entitlement (RIL- RE) is the first rights entitlement that is trading on Indian bourses. After opening at a price of Rs. 158.05 on the NSE on Wednesday (May 20), the RIL-RE moved to 212.65, a jump of 39.9% from the rights entitlement share price of Rs. 151.90.

The Rights Entitlement (RE) share price is a difference between the previous closing price of Reliance Industries at Rs 1,408.9 and the rights issue price of Rs 1,257 per share.

Trading volume in RIL-RE stood more than 2.12 crore shares far ahead of RIL shares indicating high demand. Consequently, shares in RIL-RE jumped as much as 39.99% intra-day.

The right issue shares of RIL can be applied until May 29 which happens to be the last date for on market renunciation such that rights issue shares can be credited into your account on June 2 (T+2) days and thereupon one can make first installment payment by June 3.

"Eligible equity shareholders are requested to ensure that renunciation through off-market transfer is completed in such a manner that the Rights Entitlements are credited to the demat account of the Renouncees on or prior to the issue closing date," said the company in its FAQs on RIL rights issue.

Of the RIL rights issue price of Rs. 1257 per share, 25% i.e. the first installment of Rs. 314.25 has to be paid while applying for the rights issue shares. Another 25% i.e. Rs. 314.25 per share has to paid in May 2021 and the remaining 50% i.e. Rs.628.50 per share will have to be cleared in November 2021 on-call by the company.

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