Mukesh Ambani’s Reliance Industries Ltd (RIL) on Thursday stated that it’s going to raise Rs53,215 crore via a rights challenge, the most important equity fundraise ever seen within the Indian capital markets.
Under the proposed rights challenge, each shareholder will get a rights entity entitlement to subscribe to one equity share for each 15 shares of RIL they maintain.
The rights challenge has been priced at Rs1,257, a reduction of simply over 14% on Thursday’s closing value of Rs1,467.05 per share.
At 50% shareholding, Ambani could have to herald a minimum of Rs26,600 crore to fund his subscription for the rights challenge.
The promoter and promoter group of the corporate have confirmed they may subscribe to the complete extent of their combination rights entitlement. In addition, they may also subscribe to all the unsubscribed shares within the Issue.
“The proposed Rights Issuance will be the first by RIL in three decades. The issue will be structured as partly paid shares and will enable shareholders to phase out the outlay on their investment over a period of time,” the corporate stated on an announcement
“Diversified earnings streams and conservative Balance Sheet place Reliance at an advantaged position to face the ongoing macro challenges. S&P and Moody’s have both reaffirmed Reliance’s investment grade ratings. Transformative strategic investments in Consumer facing business have firmly re-positioned Reliance as India’s pre-eminent Consumer/Technology company. Jio and Retail platforms underpin Reliance’s participation in the next leg of value creation in India” it added.