Shares of Reliance Industries Limited jumped by as much as 9 per cent on Bombay Stock Exchange on Wednesday.
In what appeared to be belated reaction to the company’s decision to increase promoters’ stake to 49 per cent from 44.8 per cent, the shares jumped by Rs 97.3 to close at Rs 1,178.2.
RIL had allotted 12 crore equity shares to its promoter group companies in October, 2008 on conversion of 12 crore warrants. With the allotment of these shares, the paid up equity capital of the company increased to Rs 1,573.79 crore — comprising of 157,37,87,556 equity shares.
Analysing the boost that the market, and particularly RIL shares, saw on Wednesday, Hitesh Agarwal, Research Head of Angel Broking, said, “After Hindalco backtracking on its decision to increase promoter stake, the market would have taken positively to this news — though belatedly — to RIL honouring its word. This shows the confidence market poses in the share.”
The Reliance group shares have been hit badly in last couple of weeks. A rumour that RIL and RNRL (Anil Ambani-owned Reliance Natural Resources Ltd) are likely to go in for out-of-court settlement might have prompted the buying spree. Several traders had built up short positions on R-group shares lately. The rally in R-group shares — RIL in particular — seems to be a show of investor confidence returning to this group, analysts said.
Anil Ambani group companies RNRL, Reliance Power and Reliance Communication also gained heavily. RNRL closed at Rs 54.25, up Rs 6.10 or 12.7 per cent, Reliance Power was Rs 103 up by Rs 4.9 or 5 per cent and Reliance Communication closed at Rs 185.4 up by Rs 17.4 or 10.3 per cent.
{{/usCountry}}Anil Ambani group companies RNRL, Reliance Power and Reliance Communication also gained heavily. RNRL closed at Rs 54.25, up Rs 6.10 or 12.7 per cent, Reliance Power was Rs 103 up by Rs 4.9 or 5 per cent and Reliance Communication closed at Rs 185.4 up by Rs 17.4 or 10.3 per cent.
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