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RIL's jumbo Rs 53,125 crore rights issue opens today: What should investors do?

Vineeta Sharma of Narnolia Financial Advisors also advised investors to apply for shares in the rights issue.

May 20, 2020 / 04:35 PM IST

Billionaire Mukesh Ambani-owned Reliance Industries' mega rights issue opened on May 20 for subscription for existing shareholders.

The company proposed to raise Rs 53,125 crore through its biggest ever rights issue which will close on June 3, 2020, while the ratio is one rights issue share for every 15 equity shares held by existing shareholders as on record date (May 14).

The ex-date for rights issue was May 13, which implies that investors who bought Reliance shares before May 13 and hold those shares in their account before May 14 are eligible to apply for the rights issue.

The rights issue price has been fixed at Rs 1,257 per share, of which 25 percent of the amount i.e Rs 314.25 will be paid by the investors at the time of application. Another 25 percent i.e. Rs 314.25 per share will be paid by the investor in May 2021 and the balance 50 percent i.e. Rs 628.50 per share will be paid in November 2021 on-call by the company at the relevant time.