Reliance Rights Issue WORLD'S BIGGEST by a non-financial issuer in 10 years
RIL's mega rights issue of Rs 53,124.20 crore has received an overwhelming response from investors as it was subscribed 1.59 times on June 3, the last day of subscription.
"The rights issue saw a huge investor interest, including from lakhs of small investors and thousands of institutional investors, both Indian and foreign. The public portion of the rights issue was subscribed 1.22 times," RIL said in a release.
RIL said it has achieved successful closure of India's largest-ever rights issue, cumulating to an overall commitment of over Rs 84,000 crore.
The allotment of equity shares will happen on or about June 10, 2020.
The rights shares are expected to be listed on the BSE and NSE on or around June 12, 2020 under separate ISIN, said RIL.
The rights shares, which are going to list on June 12, will be called partly paid-up rights shares as the payment of these shares will be in instalment.
The eligible shareholders paid the first instalment of Rs 314.25 per share through subscription today. The second instalment will be paid by investors in May 2021 and the balance Rs 628.50 in November 2021.
After the final payment in November 2021, these shares will be merged with existing fully paid-up equity shares of Reliance Industries.
Reliance's Rights Entitlement (RE) was actively traded on the stock exchanges and was the first instance of RE's being traded in dematerialised form on the stock exchanges since SEBI introduced this platform.
Commenting on the success of the rights issue, Chairman and Managing Director Mukesh Ambani said: "I express my sincere thanks to our dear and esteemed shareholders for participating in this Rights issue and making it a new and proud landmark in the history of India's capital market."
"The success of RIL's Rights issue, seen in the context of the prolonged nationwide lockdown necessitated by the COVID-19 pandemic, is also a vote of confidence, by both domestic investors, foreign investors and small retail shareholders, in the intrinsic strength of the Indian economy. I have no doubt that the Indian economy will bounce back to follow a high-growth trajectory in the time to come, and make India a leading digital nation in the world," he added.
It was the first rights issue by Reliance Industries in nearly three decades. The issue opened for subscription on May 20.
The rights ratio was 1:15 i.e. one rights share for every 15 shares held by existing shareholders and it was priced at Rs 1,257 per share.(Disclaimer: Reliance Industries Ltd is the sole beneficiary of Independent Media Trust, which controls Network18 Media & Investments Ltd)