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,