RIL sells Trust shares to raise Rs 3,188 cr
Reliance Industries Ltd has raised an estimated Rs 3,188 crore through the sale of its shares held by the Petroleum Trust.business Updated: Sep 17, 2009 23:34 IST
Reliance Industries Ltd (RIL) has raised an estimated Rs 3,188 crore through the sale of its shares held by the Petroleum Trust. The Trust’s sole beneficiary is Reliance Industrial Investments and Holdings Ltd, which is a wholly owned subsidiary of RIL.
The company, which at this point is sitting on Rs 21,000 crore of cash, offloaded 1.5-crore equity shares held by Petroleum Trust at an average Rs 2,125 per share on Thursday. The stock is reflected in the books of the Trust at Rs 158 per share.
“The company is surely not in dire need of cash. It is likely that offloading is in line with some plan the company might be having – a possible acquisition or expansion. It would help stockholders get better valuation,” said Hitesh Agrawal, head of Research with Angel Trading.
The timing is right, as there is obviously appetite for RIL stock in the market.
“For investors, this is a good opportunity,” Agrawal said, adding, “market is at good valuation and investors can sell other shares they hold at profit and get into RIL for long-term at a very good valuation.”