RIL’s Rs 53k-crore rights offer subscribed 159%

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Jun 4, 2020

MUMBAI: The Rs 53,124-crore rights issue for Reliance Industries (RIL), the largest such offering by a non-financial firm in the world, closed on Wednesday with a 59% over-subscription. This translates into a book size of about Rs 84,000 crore. The public portion of the rights issue was subscribed 1.2 times, a company release said.
The offer, which opened on May 20, was fully subscribed on Monday itself. The country’s most valued rights offer by RIL, which has a market capitalisation of Rs 9.8 lakh crore, was priced at Rs 1,257 per share.
However, subscribers will pay only 25% of the offer price now and get partly paid-up RIL shares latest by June 11, which will be listed for trading the next day. The holders of the partly paid shares will have to pay another 25% of the price in May 2021, and the balance 50% in November 2021.
According to market data, of the total demand for a little over 67 crore shares against 42.3 shares on offer, over 55 crore shares were through the BSE platform, while about 12 crore were on the NSE platform and another 80 lakh through various brokers.
On May 20, the day the offer was opened, the exchanges had also created a window for trading of rights entitlements for RIL shares. A major part of the sellers in this window were the GDR and ADR holders since they are not allowed to hold partly paid shares.
The promoters of RIL — Mukesh Ambani and his family members — currently hold a little over 50% in the explorations-to-telecom major, according to BSE data. Even before the rights offer opened, the promoters had said they will subscribed to their share in the offer. In addition, they had agreed to pick up the unsold portion of the shares in the offer, if any.
Ambani, the CMD of RIL, said that the success of the rights offer was an extraordinary show of confidence in the future of the company by its shareholders.
“Our vision is always rooted in furthering India’s inclusive and accelerated growth, propelled by the adoption of digital technologies, that helps improve the lives of 1.3 billion Indians. The tremendous vote of confidence in the rights issue convinces us that our shareholders endorse this vision and mission,” Ambani was quoted as saying in the release.


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