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    RIL’s rights issue subscribed 1.3 times on penultimate day

    Synopsis

    RIL, which has announced a flurry of share sales in subsidiary Jio Platforms to cut debt, has emerged as the highest fund-raiser through shares sale across all listed companies globally so far in 2020.

    ​Reliance Industries - BUY
    The BSE received applications for 48.5 crore rights shares, NSE for 5.64 crore and the non-ASBA bid quantity stood at 0.70 crore rights shares.
    Mumbai: Reliance Industries’ 53,124 crore rights issue — the largest such offering by a non-financial firm in the world in the past 10 years — was subscribed more than 1.3 times on the penultimate day of the offer.

    The issue, which will close on June 3, has received bids for 549 million equity shares against 422.6 million shares on the table, stock exchange data shows. Shares of Reliance Industries gained 1% to close at 1,536 on Tuesday, a 22% premium to its rights offer price of 1,257. BSE has received applications for 485 million rights shares, while NSE got applications for 56.4 million shares. The non-ASBA bid quantity was 7 million rights shares.

    The biggest rights issue in the past by a non-financial firm was in 2009 when mining giant Rio Tinto raised $12.34 billion. Italian oil giant ENEL raised about $7.6 billion in the same year.
    RIL-graph

    RIL’s rights issue price is to be paid over 18 months in three instalments– 25% or 314.25 now, 25% in May 2021, and balance 50% or 628.50 in November 2021.

    Those who subscribe to the right issue will get partly paid-up rights shares latest by June 11 which would be listed for trading on bourses on June 12.

    RIL had also offered rights entitlements to all shareholders to trade on the bourses and about 114 million entitlements changed hands in the first such transactions in India involving these instruments.

    RIL, which has announced a flurry of share sales in subsidiary Jio Platforms to cut debt, has emerged as the highest fund-raiser through shares sale across all listed companies globally so far in 2020.

    Apart from the company's rights issue, it has raised Rs 78,562 crore by selling over 17% in digital unit Jio Platforms. Facebook picked up 9.99% for Rs 43,574 crore while Silver Lake bought 1.15% for Rs 5,665.75 crore in the unit.

    On May 8, US-based Vista Equity Partners bought 2.32% in Jio Platforms for Rs 11,367 crore and on May 17 global equity firm General Atlantic picked up 1.34% stake for Rs 6,598.38 crore. In a fifth deal, global investment firm KKR & Co. bought 2.32% stake for Rs 11,367 crore. As of March 31, RIL had outstanding debt of Rs 3,36,294 crore and cash in hand of Rs 1,75,259 crore, bringing net debt position to Rs 1,61,035 crore.



    ( Originally published on Jun 02, 2020 )
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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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