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Our Bureau

Mumbai , Jan. 17

ON the last day of trading prior to its de-merger, the Reliance Industries (RIL) counter witnessed hectic activity, sending the stock up by more than 6 per cent.

The RIL stock on Tuesday closed at Rs 928.15 on the BSE, up Rs 55.05 (6.31 per cent) from Monday's close of Rs 873.

The counter witnessed huge volumes of 1.57 crore shares, compared to the two-week average volumes of over 38 lakh shares.

On the NSE, the Reliance stock shot up by Rs 55.55 (6.36 per cent) to end at Rs 928.50, from Monday's closing price of Rs 872.95.

Over 4.51 crore shares changed hands on the bourse.

Increased activity in the counter was evident as 40 per cent of the turnover of the two bourses was contributed by RIL alone on Tuesday.

Analysts said the RIL counter attracted interest from large investors who want to get a piece of the all four entities, ahead of the de-merger coming into effect.

There will be a special one-hour exclusive trading session for RIL shares on Wednesday between 8 a.m and 9 a.m. at both the stock exchanges.

The volume of the weighted average price of RIL during the session will be used to adjust the base market capitalisation of the Sensex and the Nifty.

RIL has 9.04 per cent weightage in Nifty and 11.14 per cent in Sensex.

RIL has fixed January 25 as the record date for determining the shareholders entitled for allotment of shares pursuant to the de-merger.

This may be the first time that a special trading session has been held exclusively in the shares of one company.

The hectic activity on the RIL counter on Tuesday was also due to short covering by traders. "We expect the RIL stock to be extremely volatile in the `price discovery' session on Wednesday," said Mr Pankaj Namdharani, Head (Equities) of SPA Securities.

Dealers said they do not expect a major decline in the indices' value after the de-merger.

Assets of telecom, finance and energy will be stripped from the Reliance Industries stock effective from Wednesday.

Enam Securities has valued the de-merged entities at Rs 328 per Reliance share, and the Reliance Industries stock (post de-merger) at Rs 803 per share.

"Post re-organisation, key assets in Reliance Industries would be the refining/petrochemicals business, 12.2 per cent treasury stock and the reserves of the E&P business. We estimate the value of these assets at Rs 803 per RIL share," the Enam Securities report said.

Related Stories:
Tax advantage for recent buyers of Reliance shares — Stiff tax liability for short-term sale of RIL stock
Reliance demerger comes into effect
Reliance demerger catches fund managers, traders on wrong foot

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