Reliance Industries, the country's largest listed entity by market capitalisation, has fixed the opening date for its rights issue in its board meeting on May 15.
The largest ever rights issue of Rs 53,125 crore will open for subscription on May 20 and the closing date is June 3, 2020.
Its Rights Issue Committee of the board of directors also approved Abridged Letter of Offer, Application Form of Rights Issue, and Rights Entitlement Letter, to be sent to the eligible equity shareholders of the company, Reliance said in its BSE filing.
The Letter of Offer will be filed with BSE, National Stock Exchange of India and Securities and Exchange Board of India, it added.
This is the first rights issue by Reliance Industries in nearly three decades.
The oil-telecom-to-retail major had approved its rights issue on April 30 and had fixed rights issue price at Rs 1,257 per share.
The terms of payment will be 25 percent on application and balance in one or more calls as may be decided by the board of directors from time to time.
At the time of application, shareholders will pay Rs 314.25 per rights equity share (face value Rs 2.50 + premium Rs 311.75), and the balance amount of Rs 942.75 will be payable in one or more subsequent calls as determined by the board of directors, from time to time
The rights entitlement ratio is 1 equity share for every 15 equity shares held by eligible shareholders as on the record date which was May 14
"The promoter and promoter group of the company 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 said.
Ahead of its mega rights issue, Reliance in a corporate presentation 'New Reliance for a New India' said RIL is the best proxy for India's consumption-driven and tech-propelled growth story.
It is now at the beginning of a new and unprecedented wave of wealth creation for India by harnessing the power of new technologies to fire its diverse growth engines, it said.
After entering into telecom business along with retail segment, Reliance Industries has been positioned itself as a technology and consumer company with keeping Jio at the forefront and attracted lot of foreign investors. Recently the company garnered Rs 60,596.37 crore by selling 13.47 percent stake in Jio Platforms to Facebook Inc, Silver Lake and Vista.
Jio Platforms, a wholly-owned subsidiary of Reliance Industries Limited, is a next-generation technology company building a Digital Society for India by bringing together Jio's leading digital apps, digital ecosystems and India's #1 high speed connectivity platform under one umbrella.
In a presentation, Reliance has highlighted hyper-growth of consumer businesses along with a robust oil-to-chemicals (O2C) platform, robust and high quality balance sheet to be sustained by strong cash flow generation, and improved cash flow generation increases potential for greater shareholder benefits, reflecting in the re-rating of the stock.
The stock shot up 66.6 percent after hitting March lows.
Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.
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