RIL shares rise after firm raised $800 million via bond sale

NEW DELHI: Shares of Reliance Industries advanced on Tuesday after the company raised $800 million by selling 10-year bonds, making it the first company to take advantage of India’s rating upgrade last week.

Following the development, the stock gained 1.47 per cent to end at Rs 932.40 on BSE. It opened at Rs 925 and touched an intraday high and low of Rs 939.70 and Rs 924 respectively.

The proceeds will be used to refinance the perpetual bond, call option for which is due in February 2018. We are expecting a tight pricing because this issue comes just a day after the sovereign upgrade," said a person aware of the deal.

RIL is rated on par with the sovereign rating. Companies cannot be rated higher than their sovereign.

In a note after the sale was launched Moody's said Baa2 rating reflects the company's strong cash flows.

Promoters held 47.55 per cent stake in the company as of September 2017.

For the quarter ended September 30, 2017, the company reported total revenue at 71,761 crore and net profit stood at 8,265 crore.

The scrip touched its fresh 52-week high of Rs 958.20 on October 26, 2017 and its 52-week low of Rs 491.75 on November 21, 2016.