Reliance Industries (RIL) on Saturday said its Rs 53,125-crore rights issue will open for subscription on May 20. The closing date of the issue is June 3, RIL said in a stock exchange filing.
The issue was approved by the rights issue committee of the board of directors at a meeting held on Friday. The letter of offer will be filed with the BSE, the NSE and the Securities and Exchange Board of India (Sebi). The abridged letter of offer, application form of the rights issue and rights entitlement letter will be sent to the eligible equity shareholders of the company. The company had earlier fixed May 14 as the record date for the issue.
This is the first rights issue by RIL in nearly three decades. It will be priced at Rs 1,257 a share in the share ratio of 1:15 (one rights share for every 15 shares held). The issue amount is Rs 53,125 crore.
The payment terms will be 25 per cent on application and balance in one or more calls. On application, the shareholders will pay Rs 2.50 on face value and Rs 311.75 on premium, totalling to Rs 314.25 per rights equity share. The remaining Rs 942.75 will be payable in one or more subsequent calls as determined by the board of directors from time to time.
Ambani had in August last year unveiled plans to cut debt to zero by 2021. As part of this plan, RIL has been seeking strategic partnerships across its businesses while targeting to deleverage the balance sheet.
At the end of March quarter, RIL had an outstanding debt of Rs 3,36,294 crore. It also had cash in hand of Rs 1,75,259 crore, bringing the net debt position to Rs 1,61,035 crore.
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