Mumbai: Mukesh Ambani and other promoters of Reliance Industries Ltd will issue 12 crore preferential warrants at Rs1,402 each to infuse around Rs16,800 crore in the country’s largest private firm.
The RIL board decided to issue 12 crore preferential warrants convertible into equal number of equity shares to the promoters who will increase their shareholding from 50.62% to 54.53%.
Consent of shareholders is being sought through postal ballot for which the last date would be 29 March. The result would be announced on 30 March.
The issue price of Rs1,402 is the average of the weekly high and low of the closing prices of the company’s equity shares quoted on the National Stock Exchange during the two weeks preceeding 27 February, sources said.
This price was against Rs1,253 per share being the average of the weekly high and low of the closing prices of the shares quoted on the NSE during the six months preceeding 27 February.
The preferential issue will increase the paid-up capital of the company to Rs1,513 crore from Rs1,393 crore.
An amount equivalent to 10% of the price will be paid on allotment of warrants and the remaining 90% at the time of subscription of equity shares within a period of 18 months.