RIL Shares Rights Issue – If you have Reliance Industries Limited (RIL) shares till May 14, then you have a big chance of earning. RIL has set May 14 as the record date for India’s largest rights issue of Rs 53,125 crore. On the end of business on this day, the entity which will be in the shareholders of the company will be eligible to apply for shares in these issues.
On April 30, the company of Asia’s largest wealthy billionaire businessman Mukesh Ambani announced to raise Rs 53,125 crore through a rights issue. This is the first such issue being brought out by RIL in nearly three decades.
Price of the RIL Share on offer Rs 1257, ratio of 1:15
Under this issue, one share will be offered for every 15 shares. That is, 1 share can be purchased on the already existing 15 shares. A share price under the issue would be Rs 1,257, 14 percent lower than the closing price on April 30. RIL shares have since risen to Rs 1,561.80 (Friday’s closing price), but the price of the rights issue will remain unchanged. “We inform you that the Rights Issue Committee constituted by the Board of Directors of the Company dated Thursday, 14 May 2020 as the ‘record date’ for determination of equity shareholders entitled to rights entitlements,” the company told the stock market. Has decided.
The company said that the date of opening and closing of the rights issue will be told separately. Typically, cash-strapped companies bring rights issues. RIL is bringing this issue to repay debt. Through the right offer, companies give existing shareholders the right to buy new shares at reduced rates, but they are not obligated to do so. RIL last raised funds from the public in 1991 by issuing convertible debentures.
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Key Highlights :
Amid the circumstances arising out of the Korana virus epidemic, the Ministry of Corporate Affairs on Monday issued an explanation on some of the procedural requirements regarding the rights issue by companies. The ministry has said in a circular that if the companies issuing the rights issue are not able to send notices to their shareholders by post or courier, it will not be considered a violation of the rules of company law in view of the corona virus epidemic.
The circular states that this relief will be available for right issues to be opened by 31 July 2020. However, it has also been said that this relief will be applicable only if the company has fully complied with the rules and procedures of market regulator SEBI in the issue of issue. The Ministry of Corporate Affairs had received several memorandum in this regard asking the Ministry to clarify the modalities of issuing such notices to the shareholders of listed companies. SEBI had on May 6 provided some relief to the companies for fulfilling the procedural rules regarding the rights issues to be opened by 31 July 2020.