July 16, 2020 | 12:24 AM IST

RIL declares May 14 as record date for rights issue

Reliance Industries Limited (RIL) has announced May 14 as the record date to determine shareholders for India’s biggest rights issue. This is RIL’s first issue in about three decades. The company has appointed investment banks including, Citigroup, Morgan Stanley, JM Financial and ICICI securities to manage its rights issue.

In its regulatory filing, Mukesh Ambani-led Company said, “We inform you that the Rights Issue Committee constituted by the Board of Directors of the company has fixed Thursday, May 14, 2020 as the ‘Record Date for the purpose of determining the equity shareholders entitled to receive the rights entitlement in the rights issue.”

Earlier, the company had announced fundraising of Rs 53,125 crore by way of 1:15 rights issue to trim its debts. It had said that the company would offer shares at Rs 1,257, a 14% discount to the stock’s closing price on April 30 of Rs 1,467.05. The shareholders will be required to subscribe to pay 25% on application and the rest in one or more installments.

Ideally, companies that face cash crunch use ‘rights issues’ to raise money.

Meanwhile, the company’s market capitalisation, on Monday, crossed Rs 10 lakh crore over positive developments on the debt reduction plan. The stocks traded above Rs 1,600 for the first time since January. 

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