A rights issue is an instrument for a listed company to raise additional capital.
- Record, opening, closing dates
The issue will open for subscription on May 20 and close on June 3. Billionaire Mukesh Ambani-led firm had earlier fixed May 14 as the record date for determining shareholders’ eligible to apply for the issue.
- How to apply for RIL’s rights issue
Existing shareholders of the company will have to pay only 25 per cent for subscribing to the rights issue, and the balance will have to be paid in two installments in May and November next year. The board would take the call for this purpose at the relevant time.
- Rights issue price and share ratio
The company will offer one share for every 15 shares held at Rs 1,257 per share, nearly 13 per cent discount to the closing price for May 18.
- RIL’s net debt positionCompany SummaryNSEBSEReliance Industries …1449.4015.70 (1.10%)ADD TO PORTFOLIOADD TO WATCHLISTSHARE YOUR OULOOKEXPANDChartsValuation & Peer ComparisonCommunity BuzzPEER COMPANIES
At the end of March quarter, the company 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.
- What is rights issue?
A rights issue is an instrument for a listed company to raise additional capital. Here, instead of going to the public, the company gives its existing shareholders the right to subscribe to newly-issued shares in proportion to their existing holdings.