Home / News / India /  RIL's mega rights issue subscribed 1.1 times

Mumbai: The mega 53,125-crore rights issue of country's most valued firm Reliance Industries Ltd (RIL) was completely subscribed on Monday, two days ahead of the last day of the share sale.

As of 6 pm on Monday, the rights offering was subscribed 1.1 times, data from stock exchanges shows.

The offer, which opened on 20 May, comprises of a sale of 422.63 million equity shares.

RIL has offered existing shareholders one new share for 15 held at a discounted price of 1,257.

On Monday, shares of RIL closed at 1,520.45, up 3.77% from its previous close, while the benchmark index, Sensex gained 2.71% to close at 33,303.52 points.

With the rights issue getting completely subscribed, RIL will move closer to its plans of becoming a zero net-debt company by March 2021. RIL's net debt stood at Rs1.53 trillion as of 31 December.

The rights issue, along with the multiple mega stake sales in its Jio Platforms business, are an integral part of the conglomerate's zero net-debt plan.

Jio Platforms already attracted investments of $10 billion in just a month from marquee investors comprising Facebook Inc., KKR & Co., Silver Lake, Vista Equity Partners and General Atlantic.

Investors who subscribe to the rights issue have to pay 25% of the total subscription amount and the balance will have to be paid by shareholders in two installments in May 2021 and November 2021 respectively.

Mint reported on 28 May that Reliance's largest public shareholder, the Life Insurance Corporation of India (LIC), is likely to subscribe to shares worth up to 3,000 crore, in the rights issue.

The promoter and promoter group of the company have confirmed they will subscribe to the full extent of their aggregate rights entitlement. In addition, they said that they will also subscribe to all the unsubscribed shares in the issue.

Investment banks Citigroup, Morgan Stanley, Bank of America and Axis Capital, among others are advising on the rights issue.

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