Reliance Industries share price fell in early trade today after the Mukesh Ambani-led conglomerate's stock goes ex-rights today. Ex-rights means the shares will be available for purchase without the benefit of rights issue (shares at discount price) from today. The company has identified the shareholders who are eligible to receive its additional shares.
Share price of Reliance Industries lost 4.43% to Rs 1,430 compared to the previous close of Rs 1,496 on BSE. The stock closed 4.07% or Rs 65 lower at Rs 1,435. RIL share stands higher than 20 day, 50 day, 100 day and 200 day moving averages but lower than 5 day moving averages. On Nifty, the stock fell 3.97% to Rs 1,437 compared to the previous close of Rs 1,496. Total 1.61 lakh shares changed hands on BSE amounting to turnover of Rs 24.15 crore.
On March 23 , the stock hit its 52-week low of Rs 875 . Since then, it has gained nearly Rs 600. On April 30, RIL announced its first rights issue in three decades at a share ratio of 1:15. The issue amount was Rs 53,125 crore. The rights issue was been priced at Rs 1,257, a discount of Rs 210 or 14 per cent from the previous close. One equity share could be subscribed for every 15 equity shares held by eligible shareholders as on the record date.
"The board approved the issuance of equity shares of Rs 10 each of the company on rights basis to eligible equity shareholders as on the record date of an issue size of Rs 53,125 crore," RIL said.
The promoters of the company will subscribe to their full entitlement to the rights issue and also to all unsubscribed portions, the company added.
Experts said the rights issue may be aimed at helping the company raise funds to reduce its net debt.
Meanwhile, RIL recorded a 0.1 per cent rise in consolidated profit (after exceptional items) at Rs 39,880 crore in the year ended March 2020. The oil-to-telecom conglomerate posted a profit of Rs 39,837 crore in complete FY19. RIL logged a 5.4 per cent rise in revenue at Rs 659,205 crore in FY20.
RIL reported a 39 per cent fall in consolidated profit to Rs 6,348 crore during January-March quarter 2020 against Rs 10,362 crore in the corresponding period of last year. Revenue from operations were recorded at Rs 139,283 crore, down 2.30 per cent from Rs 142,565 crore in the year-ago period.
In December quarter, India's most-valued company had reported a 13.5 per cent rise in net profit at Rs 11,640 crore as opposed to Rs 10,251 crore in the corresponding quarter last year.
"COVID-19 is significantly impacting business operation of the companies, by way of interruption in production, supply chain disruption, unavailability of personnel, closure / lock down of production facilities etc. Further, during March 2020/April 2020, there has been significant volatility in oil prices, resulting in reduction in oil prices," RIL said on coronavirus crisis.
By Aseem Thapliyal