"We are recommending investors to subscribe to the rights issue of Reliance Industries Ltd. as we are positive on the future prospects of the company on the back of strong traction in digital and retail business. The company is offering shares to existing investors in the ratio of 1:15 at a price of Rs. 1,257 per share.
RIL has built up a dominant position in both the telecom and retail business where it is the marker leader. We believe that the telecom and retail business will be key growth drivers for the company over the next few years while the company's foray into e-commerce through it's JioMart platform will be a value creator for the shareholders in the long run. The Company's digital business (JIO Platforms) has attracted investments from marquee investors like Facebook, Silver Lake Partners, General Atlantic and Vista Equity Partners of Rs. 67,195 cr, which will not only help the company pay down it's debt but also inspires confidence in the company's strategy to transform from a brick and mortar company into a digital play. We currently have a BUY rating on the stock with a SOTP based target price of Rs. 1,748."
Shares of RELIANCE INDUSTRIES LTD. was last trading in BSE at Rs.1434.65 as compared to the previous close of Rs. 1408.15. The total number of shares traded during the day was 907872 in over 31809 trades.
The stock hit an intraday high of Rs. 1445.85 and intraday low of 1393.65. The net turnover during the day was Rs. 1295176874.