The Rs 53,125 crore rights issue of Mukesh Ambani's Reliance Industries Limited (RIL) is scheduled to open on May 14 might rewrite the recent history of "rights". Shares of the company gained 3.4 per cent at Rs 1,615 on the BSE on Monday after the date was fixed for determining shareholders eligible to apply for its rights issue. The stock was trading close to its record high of Rs 1,618, and recovered 84 per cent from its 52-week low of Rs 876 on March 23.
The previous large rights issues by companies have typically had a strike rate of 25-28 per cent from shareholders, which includes the top 10 rights issues and all the large rights issues of the Tata group.
The Bharti Airtel rights issues launched in May 2019 with a size of Rs 24,939 crore got 15 per cent response from shareholders with 27,301 applications on the total number of shareholders at 186,000.
The Vodafone Idea issue in April last year received 26 per cent applications. The issue size was Rs 25,000 crore and out of the 339,000 shareholders, 87,248 shareholders applied.
The issue of Tata Steel to the tune of Rs 12,704 crore received 39 per cent applications from shareholders as of the total of 740,000 shareholders, the number of applications was 291,000.
The Tata Motors issue in 2015 to the tune of Rs 7,497 crore received 25 per cent applications as 90,631 shareholders applied out of 366,000.
The Tata Power issue in March 2014 got 38 per cent applications as 89,840 applied out of 236,000 for an issue size of Rs 1,993 crore.
The TV18 issue in 2012 for Rs 2,700 crore got a 21 per cent response from 12,976 shareholders out of 60,373.
Similarly, the Network 18 issue at the same time for Rs 2,700 crore got only 8 per cent applications from 4,304 shareholders out of a total of 56,075.
The rights issue of Tata Motors in September 2008 got only 3 per cent applications from 7,911 shareholders as compared to the total of 309,000 shareholders. Hindalco rights issue, in the same month, for Rs 5048 crore received 9 per cent applications from 30,505 shareholders as against a total of 333,000 shareholders.
State Bank of India fared much better as the rights issue in February of 2008 got 51 per cent response as 273,000 shareholders participated out of 538,000 shareholders.
The rights issue of Tata Steel in November 2007 got a higher response of 77 per cent with 441,000 shareholders applying out of 570,000 for an issue size of Rs 9,135 crore.