New Delhi: Reliance Industries Ltd (RIL) has sought shareholders’ nod to raise Rs25,000 crore through issuance of debentures on a private placement basis to meet ongoing capital expenditures and general corporate needs.
The special resolution is listed on the agenda of 40th annual general meeting (AGM) of the company on 21 July 21, RIL said in a BSE filing. According to the statement, the company will offer or invite subscriptions for secured/unsecured redeemable non- convertible debentures, in one or more series/tranches, of an aggregate nominal value up to Rs25,000 crore on private placement. Besides, the company has also sought shareholders’ approval for providing a dividend at the rate of Rs11 per equity share of Rs10, each fully paid-up for the financial year ended 31 March 2017.
The shareholders would also consider the proposal to re-appoint Nita Ambani as a director. She would retire by rotation at this meeting next month. The members would also consider a proposal to amend an article of association to impose a ceiling of 5% on purchase of equity by non-promoters in its arm Jio Payments Bank Ltd until RIL remains its promoter.
Jio Payments Bank has been issued a licence by the Reserve Bank of India (RBI) to carry on payments bank business in India. The RIL is the promoter of the payment bank holding 70% equity and the State Bank of India (SBI) holds 30%. In compliance with the terms and conditions stipulated by the RBI, the company had given an undertaking to amend the articles of association of the company to provide for an equity holding limit for non-promoters.