This Article is From May 14, 2020

Reliance Industries Drops Over 4% As Shares Trade Ex-Rights

Reliance Industries Share: On April 30, Reliance Industries had announced fundraising of Rs 53,125 crore through the rights issue.

Reliance Industries Drops Over 4% As Shares Trade Ex-Rights

RIL Share: At 10:30 am, Reliance Industries shares were trading weaker by 1.7 per cent

Reliance Industries (RIL) shares declined more than 4 per cent on Thursday as the stock traded ex-rights. On April 30, the oil-to-telecom conglomerate led by billionaire Mukesh Ambani had announced fundraising of Rs 53,125 crore through a 1:15 rights issue, and fixed May 14 as the record date. On the BSE, Reliance Industries shares fell as much as 4 per cent to Rs 1,435.45, having started the session at Rs 1472.00. The RIL shares moved in a range of Rs 1,430.05-1,496.40.

Reliance Industries had declared that one share would be offered for every 15 shares held at Rs 1,257, a 14 per cent discount to the closing price as on April 30. The rights issue is the first of its kind for Reliance Industries in almost 30 years.

The rights issue is in line with the stated goal of Mukesh Ambani to convert Reliance Industries into a debt-free company by the end of the financial year 2020-21.

Reliance Industries' digital unit, Jio Platforms, has already attracted investments worth Rs 60,596.37 crore in the past month, which includes Rs 43,574 crore from internet giant Facebook, and Rs 5,656 crore and Rs 11,367 crore from private equity firms Silver Lake and Vista Equity Partners respectively.

Meanwhile, Reliance Industries' net profit dropped 39 per cent to Rs 6,348 crore in the March quarter on the back of a slump in crude oil prices amid the COVID-19 outbreak. RIL had reported a net profit of Rs 10,362 crore in the corresponding period a year ago.

The Reliance Industries stock ended 4 per cent lower at Rs 1,435.45 on the BSE, compared to the 2.7 per cent fall in the benchmark S&P BSE Sensex index.