Should you invest in the rights issue of Reliance Industries?3 min read 08 May 2020, 05:00 PM IST
In case of a rights issue, a company may come out with a fresh batch of shares, but exclusively for the existing shareholders.
Typically, rights issue is offered in proportion to number of shares an existing shareholder is holding. RIL is offering one rights issue share for every 15 shares held by the shareholder.
With an aim to bring down the company’s debt, Reliance Industries Ltd (RIL) has come up with a rights issue offer, through which the conglomerate is planning to raise about ₹53,125 crore. RIL is not the first company to come with rights issue of shares. Read more to know what is a rights issue and should invest in the Reliance Industries’ offer?