The de-materialised trading of Reliance Industries Ltd — Rights Entitlement (RIL-RE) continued to draw strong demand on day four on Tuesday with an average premium of more than 7 per cent over the intrinsic value.
While oil-to-telecom behemoth RIL’s Rs 53,125 crore mega rights issue opened for subscription by shareholders last week, it became the first issue where eligible shareholders got the rights entitlements (REs) in demat, which could be traded on stock exchanges.
RIL-REs on an average commanded a premium of Rs 12.07 on Tuesday, over 7 per cent premium over the intrinsic value, according to stock exchange data.
At a time when marquee companies like Bharti Airtel and Kotak Mahindra Bank are selling their equity stakes at 5-6 per cent discount to their market price, RIL’s RE continues to command a premium over its intrinsic value.
The volume-weighted average price (VWAP) of RIL-REs stood at Rs 183.75 on Tuesday.