Reliance Rights Issue all set to open on 20th May

  • Post comments:0 Comments
Reliance Rights Issue all set to open on 20th May

Reliance rights issue is all set to open on May 20, 2020 and you should know key things before investing.

  • Energy to telecom giant RIL Rs 53,125 crore mega rights issue is set to open for subscription by shareholders on 20th May and closes on 3rd June.
  • The existing shareholders have to pay only 25% for subscribing to the rights issue and rest will be paid in installments in May and November next year.
  • The company will offer one share for every fifteen shares held at ₹1,257 nearly 13% discount as per closing price on 18th May.

What is Rights Issue?

A Rights Issue is an instrument for the listed company to raise additional capital. Here instead of going for public, the company gives its existing shareholders the right to subscribe to newly issued shares in proportion to their existing holdings.

Now RIL is using rights issue’s three-fourth of the payment to repay its debt as per the offer document.

Chairman and managing director of RIL, Mukesh Ambani had, in August last year, unveiled plans to cut debt ($21 billion) to zero by 2021. As part of this plan, RIL has been seeking strategic partnerships across its businesses, while targeting to deleverage the balance sheet.

Leave a Reply