Reliance Industries closes India's largest rights Issue, oversubscribed 1.59 times

Reliance Industries Ltd on Wednesday completed the nation's biggest-ever rights issue of Rs 53,124 crore after being oversubscribed nearly 1.6 times, the company said. The public portion of the rights issue was oversubscribed 1.22 times.

READ: Reliance's Jio Platforms Gets 5th Investment; KKR's Rs 11,367cr Takes Total To Rs 78,562cr

RIL announces India's largest rights Issue

Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said, “I express my sincere thanks to our dear and esteemed shareholders for participating in this Rights Issue and making it a new and proud landmark in the history of India’s capital market. Our decades-old relationship based on trust has consistently spurred us to achieve more. We are delighted and humbled by their extraordinary show of confidence in the future of Reliance."

The allotment of equity shares will happen on or about 10th June 2020. The rights shares are expected to be listed on the BSE and NSE on or around 12th June 2020 under separate ISIN. The Rights Entitlement (RE) was actively traded reflecting broad-based interest in the rights Issue. This is the first instance of RE’s being traded in demat form on the stock exchanges since SEBI introduced this platform and it was a resounding success.

READ: Reliance Launches JioMart Online Grocery Service, To Deliver In Over 200 Towns

In the rights issue, the company is offering one share for every 15 shares held at Rs 1,257. ‎RIL shares closed at Rs 1,542.45 apiece on the BSE on Wednesday.

The last time RIL tapped the public for funds was in 1991 when it had issued convertible debentures. The debentures were subsequently converted into equity shares at Rs 55 apiece.

The elder Ambani had in August last year unveiled plans to cut debt to zero by 2021. As part of this plan, RIL has been seeking strategic partnerships across its businesses, while targeting to deleverage the balance sheet.

At the end of the March quarter, RIL had an outstanding debt of Rs 3,36,294 crore. It also had cash in hand of Rs 1,75,259 crore, bringing the net debt position to Rs 1,61,035 crore.

READ: Reliance Industries' Rs 53,125-cr Right Issue To Open May 20, Close On June 3

Highlighting that the rights Issue was a reflection of the confidence shown by the investors, Mukesh Ambani said, "The success of RIL’s rights Issue, seen in the context of the prolonged nationwide lockdown necessitated by the COVID-19 pandemic, is also a vote of confidence, by both domestic investors, foreign investors and small retail shareholders, in the intrinsic strength of the Indian economy. I have no doubt that the Indian economy will bounce back to follow a high-growth trajectory in the time to come, and make India a leading Digital Nation in the World.”

READ: Mukesh Ambani Worth $36.8bn, Drops To 2nd In Forbes Richest Sports Teams Owners' List

(With ANI inputs)