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Mukesh Ambani’s Reliance Industries’ shares rights issue opens today

Reliance Industries Ltd’s Rs 53,125-crore shares rights issue, the first of its kind in almost 30 years, will open subscription of shareholders on Wednesday and close on June 3.

Mukesh Ambanis Reliance Industries shares rights issue opens today
Bengaluru, First Published May 20, 2020, 6:55 PM IST

Mukesh Ambani led Reliance Industries Ltd (RIL) opened India’s biggest-ever rights issue today. According to Hindustan Times, the company returns to the public for raising funds after a gap of three decades. RIL’s Rs 53,125 crore shares rights issue will close on June 3 with the shares of the company being offered at Rs 1,257 per share, a 14.8% discount from the current market price

Here are the key highlights:

1.Reliance is set to issue 42,26,26,894 equity shares of the face value of Rs 10 each.

2.Shareholders will have to pay only 25% for subscribing to RIL’s mega Rs 53,125-crore rights issue and they will have to pay the balance in two instalments.

3.A similar amount will be due for payment in May 2021 and the balance 50% has to be paid in November 2021.

4.They will have to pay Rs 314.25 in May 2021 and balance Rs 628.50 is to be paid in November 2021.

5.The last date for shareholders wishing to do an on-market renunciation is May 29.

6.Out of the net proceeds of Rs 53,036.13 crore, three-fourth of it will be used to repay either fully or partly the Rs 16,350 crore of commercial papers and Rs 36,213 crore of non-convertible debentures

7.Billionaire Mukesh Ambani''s firm had on April 30 announced fund raising of Rs 53,125 crore by way of a 1:15 rights issue - India’s biggest and first such issue by the firm in nearly three decades.

8.One share will be offered for every 15 shares held at Rs 1,257. Reliance Industries'' shares closed at Rs 1,408 on the BSE.

9.The last time RIL tapped into the public for funds was in 1991 when it had issued convertible debentures. The debentures were subsequently converted into equity shares at Rs 55 apiece.

10.Ambani had in August last year unveiled plans to cut debt to zero by 2021. As part of this plan, RIL has been seeking strategic partnerships across its businesses, while targeting to deleverage the balance sheet.

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