27
Friday
November 2020
5:58 AM IST
News Headlines
End of an era: Argentina football legend Diego Maradona dies        Greg Barclay elected ICC's Independent Chair        Have great respect for Indian bowlers but our batsmen have seen them a lot: Langer        Rupee rises 6 paise to 73.95 against US dollar in early trade        Biden seeks swift Cabinet votes, but GOP Senate stays silent        As virus cases spike, financial outlook for world's airlines dims        Nivar makes landfall, weakens into severe cyclonic storm        Senior Congress leader Ahmed Patel passes away at 71        India's COVID-19 caseload goes past 92 lakh; no. of active cases increases by 6,079        Left Govt moves ahead with projects having no central clearances: Chennithala        Kerala Cabinet decides to approach Governor to repeal new ordinance        Kerala reports 5,420 new COVID cases, 5,149 recoveries: CM        Cyclone Nivar : heavy rain lashes Chennai, suburbs, govt holiday today        UP okays ordinance against conversion for marriage, violators face up to 10 yrs in jail        Govts have to work as team to ensure vaccination drive is smooth, sustained: PM Modi        ICC nominates Kohli, Ashwin for Men''s Player of the Decade Award        Rohit, Ishant to miss first two Australia Tests, also doubtful for remaining two: BCCI source        India''s home series against England to feature four Tests instead of five        Odisha pay the penalty as Hyderabad keep first-ever clean sheet        Looking at India squad, Surya could have been there: Brian Lara        
Home   | Main News   | Kerala  | National   | International  | Business   | Sports   | Entertainment   | Columns   | Offbeat   | Health   | About Deepika 
Business News
Reliance Industries' Rs 53,000-crore rights issue to kick off on May 20
 
Reliance Industries (RIL) on Saturday said its 442.6-million share rights offer would remain open for subscription between May 20 and June 3. India’s most valuable firm is looking to raise Rs 53,125 crore in fresh capital through the rights issue. RIL will initially issue partly paid-up shares to raise Rs 13,250 crore and the balance will be raised later.

The rights issue price has been set at Rs 1,257 a share, a discount of nearly 14 per cent to the last closing price of Rs 1,459. The company had set May 14 as the record date for the rights issue, which meant shareholders as on that day would be eligible to apply. Shareholders will be able to apply for one share for every 15 shares held.

They will have to pay Rs 314.25 a share initially and the remaining Rs 942.75 in “one or more subsequent calls as determined by the board,” the company said. The partly paid shares will be traded separately till the time they are converted into fully-paid shares.

RIL’s rights issue — the first after almost three decades — is part of its strategy to become a zero net-debt company by March 2021.

As of March 2020, RIL’s gross debt stood at Rs 3.36 trillion and net debt at Rs 1.61 trillion.
At Rs 53,125 crore, the rights issue will be India’s biggest-ever equity fund raise. However, it remains to be seen when the company will mobilise the entire amount. The current record for the biggest-ever rights issue is held by Vodafone Idea and Bharti Airtel, which compete with RIL in the telecom business. Both the telecom operators had raised Rs 25,000 crore each through their rights offer last year.

Over half of the Rs 53,125 crore will be invested by promoters, who currently hold 50.07 per cent stake in the company. The promoters have also fully underwritten the rights issue — pledging to make up for any demand shortfall.

RIL currently has over 2.6 million public shareholders. Market experts said the success of the rights issue hinges on participation from large institutional shareholders. Some of them include Life Insurance Corporation (six per cent); Europacific Growth fund (3.05 per cent), SBI MF (1.34 per cent) and Government of Singapore (1.24 per cent).

Due to the covid-19 lockdowns, certain rules governing rights issue have been relaxed. The Ministry of Corporate Affairs (MCA) has said not sending notices through postal or courier services would not be seen as a violation of Companies Act 2013. Also, market regulator Sebi has allowed for electronic transmission of offer letter, application form and other issue material to shareholders.
Shares of RIL are down three per cent on a year-to-date basis. The stock has been on a roller-coaster ride this year, hitting a low of Rs 873 in March and then rebounding 78 per cent to Rs 1,557. Shares of the company fell nearly six per cent this week ahead of the rights issue open.


Rupee rises 6 paise to 73.95 against US dollar in early trade
Rupee opens on flat note against US dollar
Petrol, diesel prices rise for third straight day
Rupee rises for 3rd day, up 27 paise to 74.19 per USD
Lakshmi Vilas Bank shares tank 20 pc after getting placed under moratorium
Diesel sales fall 5 pc in Nov after reaching pre-COVID levels in Oct
COVID-19 hits shopping mall launches in the country
Iffco reduces NP fertiliser price by Rs 50 to Rs 925/bag
Asian shares mostly higher as focus shifts to virus recovery
CII urges Union Finance Ministry to explore ECLGS for supporting resource starved stressed sectors
Tata Motors drives in new Altroz trim at Rs 6.6 lakh
Saudi PIF invest Rs 9,555 crore in Reliance Retail Ventures
OPPO India launches Wall of Knowledge initative
Rupee slumps 33 paise to 74.74 against US dollar in early trade
Two footwear units of Von Wellx Germany become operational in Agra
Sensex ends 144 pts higher; financial stocks sparkle
Vistara to start flights to Bangladesh from Nov 5 under air bubble pact
Sharing best practices, knowledge among SCO members to help startups: Goyal
Cathay Pacific cuts 8,500 jobs, shutters regional airline
Asian shares rise after Wall Street gains on solid earnings
KERALA NEWS
Left Govt moves ahead with projects having no central clearances: Chennithala
 Thiruvananthapuram: Opposition leader in Kerala Assembly Ramesh Chennithala on Tuesday alleged that  
Kerala reports 5,420 new COVID cases, 5,149 recoveries: CM
Ker FM hits out at ED over reported probe against KIIFB; Opp says he has "something to hide"
Kerala adds 5,294 fresh COVID-19 cases; Active cases 65,856
INTERNATIONAL NEWS
Biden seeks swift Cabinet votes, but GOP Senate stays silent
 Washington: As President-elect Joe Biden started rolling out his administrative team, one voice has
As virus cases spike, financial outlook for world's airlines dims
Biden's first Cabinet picks expected Tuesday amid roadblocks
Hong Kong's Joshua Wong to plead guilty to protest charges
NATIONAL NEWS
Nivar makes landfall, weakens into severe cyclonic storm
 Chennai: Very severe cyclonic storm Nivar made landfall near Puducherry in the early hours of Thursd
Senior Congress leader Ahmed Patel passes away at 71
India's COVID-19 caseload goes past 92 lakh; no. of active cases increases by 6,079
Cyclone Nivar : heavy rain lashes Chennai, suburbs, govt holiday today
Untitled Page
Rashtra Deepika LTD
Copyright @ 2020 , Rashtra Deepika Ltd.