Categories: Business

RIL's rights issue to open on May 20, company to raise Rs 53,125 crore by June 3

Photo: FILE PHOTO OF MUKESH AMBNAI

RIL Rights Issue opening date is may 20 and closing date is june 3

new Delhi. Reliance Industries Limited (RIL) announced on Friday the opening and closing date of India's largest rights issue worth Rs 53,125 crore. The company told the stock exchanges that the Right Issues Committee meeting held on 15 May determined the dates for the opening and closing of the rights issue. The rights issue of Ariil will open on May 20, 2020 and will close on June 3, 2020. Earlier, the company had set a record date of May 14 for the rights issue.

The entity which will be in the shareholders of the company at the close of business on that day will be eligible to apply for shares in these issues. On 30 April, the company of billionaire businessman Mukesh Ambani announced to raise Rs 53,125 crore through a rights issue. This is the first such issue being brought out by RIL in nearly three decades. Under this issue, one share will be offered for every 15 shares. A share price under the issue would be Rs 1,257, 14 percent lower than the closing price on April 30.

The company told the stock market that we inform you that the rights issue committee constituted by the company's board of directors has set Thursday, May 14, 2020, as the record date for determining equity shareholders entitled to get rights entitlements. The company said that the date of opening and closing of the rights issue would be May 20 and June 3 respectively.

Typically, cash-strapped companies bring rights issues. RIL is bringing this issue to repay the debt. Through the right offer, companies give existing shareholders the right to buy new shares at reduced rates, but they are not obligated to do so. RIL last raised funds from the public in 1991 by issuing convertible debentures.

This post was published on May 16, 2020 6:33 pm

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