India’s biggest and the first such issue by the RIL in nearly three decades. Oil-to-telecom conglomerate Reliance Industries Ltd. on Saturday said its mega Rs 53,125-crore rights issue will open for a subscription of shareholders on May 20 and close on June 3.
Know About Reliance Industries’ $7 billion rights issue
Reliance Industries (RIL) Rs 53,125-crore rights issue will open for subscription on May 20 and closing date of the issue is June 3.
This is the first rights issue by RIL in in 30 years. It will be priced at Rs 1,257 a share in the share ratio of 1:15 (one rights share for every 15 shares held).
The rights issue price has been set at Rs 1,257 a share, a discount of nearly 14 per cent to the last closing price of Rs 1,459.
This was approved by the Rights Issue Committee of the board of directors at a meeting held on May 14. The letter of offer will be filed with BSE, NSE and the Securities and Exchange Board of India (SEBI).
The abridged letter of offer, application form of rights issue and rights entitlement letter will be sent to the eligible equity shareholders of the company.
The payment terms will be 25 per cent on application and balance in or more calls.
On application, the shareholders will pay Rs 2.50 on face value and Rs 311.75 on premium, totalling to Rs 314.25 per rights equity share.
The remaining Rs 942.75 in “one or more subsequent calls as determined by the board,” the company said. The partly paid shares will be traded separately till the time they are converted into fully-paid shares.
“The promoter and promoter group of the company have confirmed they will subscribe to the full extent of their aggregate rights entitlement. In addition, they will also subscribe to all the unsubscribed shares in the Issue,” Reliance Industries said.
RIL’s rights issue — the first after almost three decades — is part of its strategy to become a zero net-debt company by March 2021.
Reliance Industries Limited Rights Issue Key Points You Need To Know
- At Rs 53,125 crore, the rights issue will be India’s biggest-ever equity fund raise by Reliance Industries Limited (RIL).
- Reliance has taken the step of issuing rights shares for the first time in three decades.
- A common investor can also invest in the largest company in the country
- The rights share will be given at a price of Rs 1,257. It is 14 percent cheaper than the closing price of this stock on 30 April.
- The share ratio of 1:15 (one rights share for every 15 shares held). The issue amount is Rs 53,125 crore.
- The company plans to be debt-free by March 2021
- As a promoter and 50 percent shareholder, Mukesh Ambani will have to pump in 26,600 crores for his portion of the rights issue. Other promoters have also pledged to acquire their portions.
FAQs for Rights Issue Reliance Industries Limited
When will Reliance Industries Rights Issue open?
Reliance Industries Limited (RIL) rights issue will open for subscription on May 20
What is RIL Rights Issue closing date?
RIL rights issue closing date is June 3
What is rights issue size of Reliance Industries Limited?
Reliance Industries issue amount is Rs 53,125 crore
What is the RIL rights issue price?
RIL rights issue will be priced at Rs 1,257 a share in the share ratio of 1:15 (one rights share for every 15 shares held).
What is a rights issue?
A listed company can raise additional capital by issuing equity shares to existing shareholders on a rights basis.
How can you apply for the RIL rights issue? / How to subscribe to rights issue of Reliance Industries (RIL)?
The process is to apply through ASBA (Applications Supported by Blocked Amount). If your bank supports, you can apply online through them just like IPOs, or else, you will get courier of the Composite Application Form (CAF) from RTA (Registrar and Transfer Agent) of the company. You’ll need to submit the form at a Self-Certified Syndicate Bank’s (SCSBs) branch.