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Analysts Recommend “Subscribe” To Reliance Right Issue May 23 2020Right Issue

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Analysts Recommend “Subscribe” To Reliance Right Issue

The biggest ever right issue in the history of the financial market started on 20th May. The Rs. 53,125 crore right issue by Reliance Industries allowsexisting shareholders to get the company’s shares at Rs. 1,257. An investor holding shares of RelianceIndustries on 14th May in the demat account would be eligible to apply for the issue. The entitlement ratio for the right issue is 1 share for every 15 shares held by the eligible shareholders.

Owing to the numerous reasons, analysis all over are recommending subscription to Reliance right issue. The following are the reasons that analysts are positive about this right issue.

·         The flexibility in the payment system of the right issue is one of the primary reasons for recommending Reliance right issue. The investor is required to pay just one-fourth of the due amount initially to invest in a world-class business. The remaining two instalments fall in the next year.

·      With the right issue, the company will be havingsufficient funds to lower down its debt levels. The company is on course to meet its target of becoming debt-free by 2021.

·         The major part of Reliance’s value comes from the B2C businesses that include telecom and retail. Both the businesses are performing extremely well and with the entry of marquee investors, the growth in the business shall continue.

·         The right issue along with stake sale in the Jio Platform gives visibility in the cash inflowsof the company.

·         According to The Sum-Of-The-Parts Valuation(SOTP), the actual value of the company’s stock comes around Rs. 1,680. This suggests that a significant upside can be seen from the current levels.

·         Reliance is offering its business to the current shareholders at a substantial discount that makes the right issue very attractive.

The above mentioned are a few reasons why the analysts are recommending the investors to subscribe to the Reliance right issue. To know more about the share market information and opening online demat account, you can get in touch withIndira Securities. We are one of the leading share market brokers in India.

 

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Prevent Unauthorized Transactions in your demat and trading account --> Update your Mobile Number/Email id with your Depository Participant and Stock Broker. Receive alerts on your Registered Mobile for all debit and other important transactions in your demat/trading account directly from CDSL and Stock Exchanges on the same day.........issued in the interest of investors...

1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.

2. Update your Mobile Number & Email Id with your Stock Broker/ Depository Participant and receive OTP directly from Depository on your Email Id and/ or Mobile Number to create pledge.

3. Pay 20% upfront margin of the transaction value to trade in cash market segment.

4. Investors may please refer to the Exchange's Frequently Asked Questions (FAQs) issued by NSE vide. Circular No. NSE/INSP/45191 dated: July 31, 2020 and NSE/INSP/45534 and BSE vide Notice No. 20200731-7, dated: July 31, 2020 and 20200831- 45 dated: August 31, 2020 and dated: August 31, 2020 and other guidelines issued from time to time in this regard.

5. Check your Securities/ MF/ Bonds in the Consolidated Account Statement issued by NSDL/ CDSL every month.

"As per the directives of CDSL and esteemed Exchanges, it has been made mandatory for every client to furnish their latest KYC details viz. Valid Mobile No., Email- Id & Income range on or before 31.05.2021 else your Account will be marked as Non Compliant and will be Freezed till the compliance of such requirement."
REGISTRATION NOS:

INDIRA SECURITIES PVT.LTD. (SEBI REG.NO.):NSE TMID: 12866, BSE TMID: 663, CDSL DPID: 17000 SEBI REG. NO.: INZ000188930, MCX TM ID: 56470, NCDEX TM ID: 01277, CDSL REG. NO.: IN-DP-90-2015, CIN : U67120MH1996PTC160201
INDIRA COMMODITIES PVT. LTD. CIN : U65921MH1995PTC089399

DISCLAIMER:

"INVESTMENT IN SECURITIES MARKET ARE SUBJECT TO MARKET RISKS, READ ALL THE RELATED DOCUMENTS CAREFULLY BEFORE INVESTING."

INVESTORS GRIEVANCE

Manoj Bhandari. Email: complaint@indiratrade.com. Call : 0731-4797275