RIL rights issue subscribed 1.6 times on attractive discount to CMP

Market players say strong demand for issue underscores investors faith in firm's long-term prospects

Reliance Industries’ (RIL’s) Rs 53,125-crore fund raising initiative to reduce debt saw a stellar response from investors. The 422.6-million share offering received bids for 671.1 million shares, making it among the most subscribed rights offerings in India.

Market players said the strong demand underscored investors’ faith in the long-term prospects of the firm, which is trying to diversify from the oil and gas business to new-age digital businesses. The interest was also driven by the attractive discount between the rights issue price and current market price of RIL shares. The stock closed at Rs 1,542 on Wednesday, a premium of 23