InvestorQ : Why did Reliance correct so sharply to below Rs.1500 on 12 May?
diksha shah made post

Why did Reliance correct so sharply to below Rs.1500 on 12 May?

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Arti Chavan answered.
11 months ago
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The correction was largely on account of rights adjustment on the last ***-rights date. The last day to buy RIL, *** rights, was 12 May. From 13 May, the stock goes ex-rights with 14 May being the record date for the rights issue. The rights adjustment factor will be 0.99061 and this factor is applied across all option strikes of the stock. For example, the strike price of RIL 1000 option will automatically stand modified to RIL 990.50 option. This adjustment factor will be uniformly applied across all the strike prices from the ex-date of 13 May. RIL is also talking to General Atlantic and Saudi Sovereign Fund for additional sale of stake in Jio Platforms. This fall in price could be due to a mix of institutional selling and also to reflect the EPS dilution post the rights issue.

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