Reliance PP shares - No takers ?

Reliance Industries PP shares will be suspended for trading from coming Tuesday, 11th May, 2021, as First Call of Rs. 314.25 per partly paid-up equity share (including a premium of Rs. 311.75 per share) would be payable on the said PP shares from May 17, 2021 to May 31, 2021 (both days inclusive).

Reliance Industries were trading at Rs. 1,995 on 30-4-21 and now at Rs. 1,915, losing 4% in 4 trading days. Conversely, Reliance PP were trading  at Rs. 1,074 on 30-4-21 and now at Rs. 971, losing 9.6% in 4 trading days.

If we add balance payable of Rs. 943 on PP shares (of which, Rs. 628.50 is to be paid in November 2021, after 6 months from now), the value comes to Rs. 1,914, which is equal to fully paid up share present price. Infact RIL May Future is trading at Rs.1,927, at a premium of Rs. 10.  

It means that there are no takers for PP shares, due to no premium seen on deferred facility of 628 of 6 months. Also, rather than investors , it was traders and speculators seen indulged in buying it earlier. Maybe, due to outlook on the stock seen cautious to bearish, while absolute fall in fully paid up shares will be higher on relative basis in case of PP shares, as seen in last 4 days.

 
This is not a sell recommendation, while stock recommendations are provided exclusively to our paid members in the Member Zone.