RCVL scrip debuts at Rs 24 level

Reliance Capital Ventures (RCVL), to be managed by the Anil Ambani group, on Tuesday got listed on the Bombay Stock Exchange (BSE) at Rs 24.80 and on the National Stock Exchange (NSE) at Rs 24.50. RCVL is the first company from the Reliance Industries (RIL) spin-off to be listed on the bourses.

The RCVL stock saw over 1.88 crore change hands on the BSE, while 3.31 crore shares were traded on the NSE. About 122.31 crore shares were listed on the BSE. The stock closed on Tuesday at Rs 22.35 on the BSE and at Rs 22.5 on the NSE.

RCVL is likely to merge with Reliance Capital (RCL) which on Tuesday closed on the BSE at Rs 458, as the boards of both the companies have already approved the merger.

"RCVL would move in line with the Reliance Capital stock," said a broker.

Reliance Capital Ventures was formed with the demerger of RIL's stake in Reliance Capital as part of the settlement between the Ambani brothers. For every share in Reliance Industries, the shareholders received one share of RCVL.

RCVL owns 29 per cent in Reliance Capital. Its shareholders will get five shares in RCL for every 100 held in RCVL. Based on the closing prices, the RCVL stock traded at about a discount of 2.4 per cent to RCL on the BSE and of 1.7 per cent to RCL on the NSE.

By the third week of March, other ADA group shares of Reliance Energy Ventures, Reliance Natural Resources and Reliance Communication Ventures will also be listed.

"The ADA group has stakes in a lot of listed as well as unlisted companies. I am bullish on the stock as the profitability of all the companies is good. The stock has also seen a correction. The budget will not have much direct impact on the stock, but it may be indirectly affected by changes brought in the power sector," said Sailav Kaji, an analyst at Pioneer Intermediaries Pvt Ltd.