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

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.

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