14th May fixed as record date for rights issue by RIL
May 14 has been fixed as the record date for India’s biggest rights issue of Rs.53,125 crore by Reliance Industries Ltd. In nearly three decades, this is RIL’s first such issue.
On April 30, RIL announced its fundraising plan of Rs53,125 crore through a 1:15 rights issue which will offer shares at Rs.1257, a discount of 14% to the stock’s closing price on April 30 of Rs.1467.05.
In a regulatory filing, RIL said that the Rights Issue Committee constituted by the BOD at a meeting fixed on Thursday, May 14, as the ‘Record Date’ for the purpose of determining the equity shareholders entitled to receive the rights entitlement in the rights issue.
Shareholders subscribing to the issue will have to pay 25% on application and the in rest in tranches.
Mukesh Ambani will have to pump in at least Rs.26,600 crore to subscribe to his portion of 50% shareholding. Ambani and other controlling shareholders have pledged to buy the full extent of their entitlement besides subscribing to all unsold shares.
RIL would shortly inform the rights issue opening and closing dates.