With the partly paid up shares of RIL listing on 10-Dec, will that boost the market cap of Reliance Industries?

That is correct, the partly paid shares of the rights issue finally listed on 10-December bringing a close to the 18-month old rights issue of Reliance Industries, wherein they raised Rs.53,124 crore. As reported by the NSE in its circular, a total of 41.88 crore shares were added to the free float of Reliance and merged with the original Reliance ISIN code of INE002A1018. Partly paid up shares of Reliance had ceased to trade on 09-Nov.

The rights issue price was Rs.1,257 per share so rights investors have nearly got 100% returns on the stock. the shares have nearly doubled at the current market price of Rs.2,435 for Reliance Industries. The infusion of these 41.88 crore fresh shares will expand the free float market cap. RIL market cap, with this infusion, stands at Rs.16,50,000 crore and that is nearly 23% higher than the second most valuable company in India, TCS.

This enhanced weightage in the Nifty will have other benefits for Reliance too. With the increase in free float, the weightage of RIL in the benchmark indices like Nifty and Sensex will go up further. This will also lead to increased allocation to Reliance by the passive index funds, index ETFs and global flows MSCI index benchmarked flow books. It is estimated that nearly Rs.2,800 crore could flow into RIL as adjustment flows.

This completes the third and final tranche of the Rs.53,124 crore rights issue made in May 2020 at Rs.1,257 per share. The amounts were collected in 3 tranches of 25% on application, 25% as part of first call in May 2021 and the balance 50% as part of the second and final call which just got completed in November 2021.