NEW DELHI :
Reliance Industries Ltd (RIL) has fixed May 14 as the record date for its ₹53,125 crore rights issue, India’s largest such share sale. “We inform you that the Rights Issue Committee constituted by the Board of Directors of the Company has, at its meeting held today, fixed Thursday, May 14, 2020 as the ‘Record Date’ for the purpose of determining the equity shareholders entitled to receive the rights entitlement in the rights issue (“Eligible Shareholders”),” RIL said in a filing to stock exchanges.
Only those who are shareholders on the record date will have the right to buy these shares during the rights issue.
The Mukesh Ambani-led company said the opening and closing dates of the rights issue will be informed separately.
According to an IANS report, RIL rights issue, which will be priced at ₹1,257 per share with a share ratio at 1:15, is expected to open on May 22. As per the payment terms, 25 per cent of the amount will be on application and the balance on more calls.
Mukesh Ambani, chairman and managing director of RIL, who holds 50% stake along with other controlling shareholders have pledged to buy the full extent of their entitlement and also subscribe to all unsold shares in the rights issue.
The rights issue is part of RIL’s plans to become a zero-debt company by the end of this year. Reliance’s net debt stood at ₹1.53 trillion as of 31 December.
Moody’s Investors Service has said that the rights issue is credit positive for Reliance as earnings will decline because of economic shutdowns. RIL’s Jio Platforms has raised ₹ 60,596.37 crore from leading technology investors — Facebook, Silver Lake and Vista Equity Partners — in less than three weeks.
