The rights issue will open on May 20, 2020
The Rs 53,125-crore rights issue of Reliance Industries Limited (RIL) will open for subscription on May 20, the company said in a regulatory filing. The opening date of the issue is May 20 and the closing date is June 3, according to RIL. The shares are priced at Rs 1,257 a share (equity price Rs 10), with a share ratio of 1:15. This is the first rights issue by Reliance in nearly three decades. The closing date is June 3, 2020.
The Eligible equity shareholders are those holding shares on the record date i.e., May 14, 2020. The letter of offer will be filed with the stock exchanges and the Securities and Exchange Board of India (SEBI). The abridged letter of offer, application form of the rights issue and rights entitlement letter will be sent to the eligible equity shareholders of the company.
The country’s most valuable company is also the country’s most indebted company. As on Q4 2019-20, Reliance total consolidated debt stood at ₹1,61,035 crore and it proposes to utilize all such funding for reduction of the debt to become debt-free company by next financial year.
Reliance – Payments Terms for Rights Issue
The payment terms for the issue will be 25 per cent on application and balance in one or more calls. On application, the shareholders are required to 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 will be payable in one or more subsequent calls as determined by the board of directors from time to time. It may be noted that the Promoter group has agreed to subscribe to all shares not subscribed by the other rights holders.
Reliance Shareholding Pattern for the quarter ending on March 2020
| Shareholder Category | No of Shareholders | Number of fully paid-up equity shares | Voting Rights % |
| Promoter | 48 | 3,09,80,84,968 | 50.07 |
| Public | 26,32,119 | 3,08,98,18,346 | 49.93 |
| Shares underlying Depository Receipts | 1 | 1 |
News Source: BSE Filling
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