The intrinsic value of a 25 per cent paid-up share will be one-fourth of the fully paid-up share price.
At 12.27, these shares were trading at Rs 671.55 a piece on the BSE, up by 3.95. (Photo: AFP)
Reliance Industries’ partly paid-up rights equity shares made a strong debut at Rs Rs 684.90 per share on the National Stock Exchange (NSE) on Monday. The shares got listed at Rs 690 on the NSE as against its intrinsic value of Rs 397 per share.
Last week, the BSE had said, “Effective from Monday, June 15, 2020, the new securities of Reliance Industries Ltd (Scrip Code: 890147) shall be listed and permitted to trade on the Exchange in the list of ”A” Group of Securities.”
As per the reports, after opening, the rights issue hit the upper circuit of 10 per cent at Rs 710.65. The partly paid-up shares were separately listed on stock exchanges on Monday under the new ISIN code IN9002A01024 and scrip ID or Symbol will be RELIANCEPP on BSE and NSE.
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At 12.27, these shares were trading at Rs 671.55 a piece on the BSE, up by 3.95, against Reliance Industries’ shares that were down 1.19 per cent at Rs 1,566.20.
Similarly, on the NSE, the partly paid-up rights equity shares were trading 3.87 per cent high at Rs 671.05 apiece.
The intrinsic value of a 25 per cent paid-up share will be one-fourth of the fully paid-up share price. Thus, if the fully paid-up share is trading at Rs 1,600, the intrinsic value of a partly paid-up share will be Rs 400. Any higher price it commands will be the premium a buyer is willing to pay to own the partly paid-up share.
The Rights Equity Shares were issued as partly paid-up and an amount of Rs 314.25 per share was payable on application (of which Rs 2.50 was towards face value of rights equity share and Rs 311.75 towards the premium amount of rights equity share).
The remaining 75 per cent is to be paid next fiscal, reports stated.
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