Reliance Rights Issue : Subscribe or not

Reliance Industries have shared the Q4 Results of FY19-20 as well as FY19-20 full year results. Company also proposed a rights issue @ 1257 Rs.

Should an investor subscribe to it or not depends upon the holding price of investors current holdings

Below snap shows potential scenarios whether investor can benefit or not

Reliance Rights Issue Subscribe or not
Analysis for subscribing Reliance Rights isuse

As we can see, only two types of investors can benefit

  1. Scenario 1 –>Who have already bought Reliance near the bottom, i have taken 950 Rs average holding price as catching bottom not easy
  2. Scenario 3 Case 3 –> Who can buy shares at 1600 Rs if Reliance shares move up.

There is third type of investor who has bought Reliance shares in near past (scenario 1) in anticipation of Rights issue and dividend, actually they don’t have much to gain in current scenario until reliance shares moves up. So they should wait to subscribe based on cutoff date for Right issue and also check Reliance share price that time.

For rest of the investors its either negative or neutral.

Above example shows potential scenarios. Please do your due diligence before making investment decision.

In case you have any questions/ queries, please feel free to reach me through Contact Form

Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.

Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.

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