Shares of Reliance Industries (RIL), along with its partly paid (RIL PP) shares continued their upward movement with the market price of both these stocks hitting a fresh record high on the BSE on Wednesday. RIL’s PP shares hit a new high of Rs 1,469.95, and has more-than-doubled from its closing price of Rs 689 on listing day (June 15, 2020).
RIL’s PP shares, with a face value of Rs 2.5 each, were issued as a part of the Rs 53,124-crore rights issue. The stock had made a stellar debut with the scrip ending at Rs 698, a 122 per cent premium against the issuance price of Rs 314.25. Coupled with the listing day rally, the stock has appreciated 368 per cent on the BSE till today.
RIL fully paid (RIL FP) shares (with a face value of Rs 10 each), too, hit a fresh high of Rs 2,368.80, surpassing its previous high of Rs 2,360 hit on September 14. In the past six months, the stock of RIL FP has advanced by 133 per cent on the BSE.
The stock of RIL has been on a roll on the back of making the company debt free. Billions of dollars have poured into its Telecom Venture JIO and now Reliance Retail seems to have caught the fancy of marquee investors. The company bounced back sharply post hitting a low of Rs 864 on March 23, enriching its shareholders in the most spectacular way.
“Long term, we continue to like RIL’s business and balance sheet, and we believe all three of its core businesses – O2C, Retail and Digital Services – have become self-sustaining and cash generating, with Retail and Digital Services on a high growth path. The stock has outperformed the Nifty50 by 22 per cent over the past three months on the back of the company’s significant deleveraging and new investors and partners in the Digital Services business, setting a new benchmark valuation,” analysts at HSBC said in stock update note.
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