RIL rights issue ends today; subscribed 1.3 times

Received total bids for 55.08 crore rights shares

The rights issue of Reliance Industries (RIL) received total bids for 55.08 crore shares, as against 42.26 crore shares on offer, according to BSE data at 5:30 PM IST. The issue was subscribed 1.3 times.

The rights issue valued at Rs 53,125 crore, opened for subscription on 20 May 2020 and closes today (3 June).

All eligible shareholders as per record date of 14 May were entitled to subscribe to the fresh issue. The company will offer existing shareholders one new share for 15 held at a discounted price of Rs 1,257.

The promoter and promoter group of the company have confirmed they 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.

Shareholders will only have to pay 25% of the total subscription amount and the balance will have to be paid by shareholders in two installments in May 2021 (25%) and November 2021 (50%) respectively, as per the company's filing.

The price of de-materialised trading of Reliance Industries Ltd-Rights Entitlement (RIL-RE), which was listed on 20 May 2020 at Rs 158, ended at Rs 223 on 29 May 2020, with a jump of nearly 41%. This is the first time a rights entitlement was traded after the market regulator introduced it earlier this year to provide investors a mechanism to transparently discover the value of their REs.

On a consolidated basis, RIL's net profit fell 38.74% to Rs 6,348 crore on 2.5% decline in revenue to Rs 151,209 crore in Q4 March 2020 over Q4 March 2019.

RIL is India's largest private sector company. RIL's activities span hydrocarbon exploration and production, petroleum refining and marketing, telecom and digital services.

Shares of RIL rose 0.41% to Rs 1542.45 on Wednesday on the BSE. It had traded in the range of Rs 1533.25 and Rs 1559 during the day.

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