Reliance Anil Dhirubhai Ambani (ADAG) company, Reliance Capital share price has been reaching the upper circuit for the past five trading sessions. This Anil Ambani-backed stock, which is one of the Reliance ADAG companies listed on Indian stocks, is in the news these days for being acquired by Torrent Group and Hinduja Global. So stocks are in action as both companies have made an offer to acquire NBFC backed by Anil Ambani who is Chairman of Reliance ADAG.
Reliance Capital Auction Details
However the to import is in NCLT court as Torrent Group and Hinduja Global participated in the electronic auction on December 21 to acquire RCap, where the former led the bid with an offer of $Rs 8,640 crore for the proposed acquisition. But, two days later, Hinduja Global offered a revised offer to the tune of $9,000 crores. While hearing the case, NCLT ordered Reliance Capital to refrain from accepting Hinduja Global's new offer, giving Torrent Group relief. The NCLT is expected to hear the proceedings next week and make a final decision regarding which offer Reliance Capital should accept.
Speaking about the reasons for the continued rally in Reliance Capital shares, Avinash Gorakshkar, head of research at Profitmart Securities, said: "The market is excited about Reliance Capital shares about the new management taking over the company in the new financial year as NCLT has set a deadline date of March 31, 2023 for NBFC resolution So whatever verdict comes out of NCLT, the market expects the outcome to be financially beneficial and the corporate governance of the NBFC".
Advising stock investors to avoid taking any new positions in the scrip, Saurabh Jain, vice president of research at SMC Global Values He said: "This is a short-term sentiment and from a fundamental perspective, there is no change in the company's financials. One should think about exiting the bonus at the current rise and avoid taking any new position in the crisis-ridden company. debt". He said that clarity would come only when the NCLT verdict is out and no one knows how long it would take for NCLT to render its final verdict on the new twist.
Reliance Capital stock price opened higher today and locked the upper 5 percent loop within minutes of market open after rising to its intraday high of $10.65 each at NSE. After making it to the upper circuit today, the small-cap penny stock managed to reach the upper circuit in all 5 sessions in the new year 2023.
Disclaimer: The opinions and recommendations made above are those of individual analysts or brokerage firms, and not of the Mint. We advise investors to consult certified experts before taking any investment decisions
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