Reliance to use 3/4th of Rs 53,036 crore rights issue to repay debt

Reliance Industries (RIL) will use three-fourth of proceeds of its mega rights issue for repayment of some of its borrowings, according to the offer document.

The company expects net proceeds of Rs 53,036.13 crore from the rights issue that opens on May 20 and closes on June 3.

Out of these, Rs 39,755.08 crore would go towards “repayment/ prepayment of all or a portion of certain borrowings availed by company,” it said.

The remaining Rs 13,281.05 crore would be used for general corporate purposes. Shareholders will have to pay only 25 per cent for subscribing to the company’s mega Rs 53,125-crore rights issue, and the balance will have to be paid in two installments in May and November next year, the company said. 

One share will be offered for every 15 shares held at Rs 1,257.

Of the Rs 1,257 per share price, only 25 per cent is to be paid at the time of subscription. A similar amount will be due for payment in May 2021 and the balance 50 per cent has to be paid in November 2021, the company said.