The share price of Reliance Industries Ltd (RIL) recovered today on arbitrage opportunities between RIL and Reliance Petroleum Ltd (RPL), dealers said.
The stock was up 0.36 per cent on the Bombay Stock Exchange at Rs 265.25. It recovered from an early low of Rs 263.50, but off the day's high of Rs 268.45. A total of 13.91 lakh shares changed hands on the BSE, while the National Stock Exchange witnessed a volume of 25.15 lakh shares.
Dealers said there has been interest in the RIL stock, post-IPCL acquisition. They also said that arbitrage business is also taking place in the stocks of the two Reliance group companies -- RIL and RPL -- as the date set for the merger of RPL with RIL comes closer.
RPL would be merged with RIL in a swap ratio of 1 RIL share for every 11 RPL shares. The merger is to become effective from April 1, 2002.
On Thursday, the RIL stock shed 1.3 per cent to Rs 265.30 on profit-taking, after a recent surge. The stock, from a low of Rs 232.60 on August 8, 2002, had surged by 15.6 per cent within a few trading sessions to Rs 268.90 on September 4, 2002.
The RIL stock has also been boosted by the announcement of a bailout package for the troubled Unit Trust of India. The bailout package has eased the fears of the country's largest mutual fund offloading RIL shares in the secondary market.
Earlier, sustained selling pressure from UTI had led to a slide on the RIL counter. RIL figures in the list of top holdings of UTI. The scrip, from a peak of Rs 329.70 on January 11, 2002, had lost 29.4 per cent in seven months to a recent low of Rs 232.60 on August 8, 2002.
