Reliance Industries sets May 4 as record date for determining its equity shareholders for RS 53000 crore rights issue

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Reliance Industries Ltd has utilised the lockdown for its subsidiary company Reliance Jio. To describe it more it has raised enough funds in less than three weeks with leading investors – Facebook, Silver Lake and Vista Equity Partners. Also, about RIL being a debt free company by the end of this financial year with the help of right issue has benefitted the company to the extent.

Reliance Industries
The company has fixed May 14 as the record date for the right issue. India’s largest sale comprising of shares worth Rs. 53125 crores. It simply means that the shareholders on the date fixed or record date have the right to buy shares during the right issue. The estimation from sources says that the issue is most likely to happen in the end of May. Mukesh Ambani says that the opening and closing dates will be announced separately.
Reliance Industries Ltd right issue will be priced at Rs 1257 per share with a ratio of 1 share over 15 shares. As per the payment, 25 per cent of amount will be on application and the rest on calls. The main motive behind the right issue is to become a zero-debt company without any obligations and the debt after the issue will stand at about 67 thousand crores.

Mukesh Ambani, chairman of RIL who holds about 50% stake in the company along with other shareholders have decided to buy the full extent of their entitlement and also to subscribe the remaining shares which are left unsold in the right issue process.
Moody’s Investor Service claims that the action of right issue will turn positive for Reliance as earnings will decline because of the economic slowdown and creeping recession. Thus, the earnings would help out Reliance as well as to its shareholders. The strategies to build a strong business model and delivering it at accurate timing is RIL’s motive.

 

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