The oil-to-telecom conglomerate had issued 42.26 crore partly paid shares as part of its ₹53,124-crore rights issue programme in June 2020. The company had collected 25% of the payment initially, another 25% of the payment was collected in June an...
Technical and derivatives analysts expect the stock to rise further in the coming months.
Mumbai: Analysts are advising traders to add bullish bets on Reliance Industries as the weightage of the stock in major indices is likely to go up following the final payment towards its partly paid-up rights issue due in November.
The oil-to-telecom conglomerate had issued 42.26 crore partly paid shares as part of its Rs 53,124-crore rights issue programme in June 2020. The company had collected 25% of the payment initially, another 25% of the payment was collected in June and the balance 50% will be collected in November.
When the full payment is collected and these shares become normal shares, the free float of RIL will increase.
"The weightage of the stock will increase in MSCI India, Nifty and Sensex sometime in the month of December after they become fully paid-up," said Sriram Velayudhan, vice president-alternative research at IIFL Securities.
"Looking at the current market momentum we believe one can look to gradually start building positions in RIL in the run-up to this potential rebalancing event. We estimate inflows of $425 million in RIL shares as a result of this rebalancing," he said. The final call payment for the partly paid-up shares due in November is at Rs 628.50 apiece. RIL shares rose 2.08% to close at Rs 2,609.1 on Tuesday after hitting an all-time high of Rs 2,612 during the day.
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Technical and derivatives analysts expect the stock to rise further in the coming months.
