Mukesh Ambani-led Reliance Industries Ltd (RIL) on Saturday said it will open its Rs53,215 crore ($7 billion) rights issue for subscription on 20 May, according to a stock exchange filing.
The rights issue will close on 3 June, the filing said.
As part of the proposed rights issue, shareholders of RIL will be offered one new share for every 15 held at ₹1,257 apiece. This is the first rights issue by India’s most valuable firm in three decades.
The issue will be structured as partly paid shares and will enable shareholders to phase out the outlay on their investment over a period of time.
Shareholders who subscribe to the rights issue will have to pay ₹314.25 per share at the time of application and the rest Rs942.75 in one or more subsequent tranches as determined by the firm.
Mint had reported on 7 May that RIL has appointed nine investment banks for its proposed rights issue.
Foreign banks Citigroup and Morgan Stanley, and Kotak Mahindra Capital, JM Financial Ltd, Axis Capital and ICICI Securities in the domestic space, have been appointed to manage the country’s largest share sale.
The rights issue is part of RIL’s plans to become a zero net-debt company by the end of March 2021. The company’s net debt was at ₹1.53 trillion as of 31 December.
