RIL gains on mega rights issue & Jio deal

Reliance Industries Limited (RIL) announced that its rights issue of a size of Rs 53,125 crore will open on May 20 and close on June 3, 2020. Also, General Atlantic is set to make an investment in Jio Platforms.

The company had previously announced that for the first time, it will be undertaking rights issue as its board of directors and management has approved the issuance of equity shares of Rs 10 each on rights basis to eligible equity shareholders of the company of an issue size of Rs 53,125 crore. The rights issue price is set at Rs 1,257 per fully paid-up equity share, which also includes a premium of Rs 1,247 per equity share. As for the terms of payment of issue price, 25 per cent will be on application and the balance in one or more calls. Hence, the shareholders will pay Rs 2.50 on face value and Rs 311.75 on premium thus, bringing the total to Rs 314.25 per rights equity share to be paid in May 2021. The remaining of Rs 942.75, which is Rs 628.50, i.e. the balance of 50 per cent is scheduled for payment in November 2021.The right entitlement will be of one equity share for every 15 equity shares held by eligible shareholders, as on the record date.

Additionally, RIL has announced of bagging a deal with General Atlantic, wherein the latter will be investing around Rs 6,598.38 crore in Jio Platforms, thus gaining an equity stake of 1.34 per cent in Jio Platforms on a fully-diluted basis. Jio Platforms have successfully attracted big investments for the fourth consecutive week now.

Reliance Industries Limited is engaged in refining, including manufacturing of refined petroleum products and petrochemicals, including manufacturing of basic chemicals, fertilisers and nitrogen compounds, plastic and synthetic rubber in primary forms.

On Monday at around 9:30 am, the stock of the company was trading at Rs 1473.75, up by 1.017 per cent or Rs 14.85 per share. The 52-week high is Rs 1603.24 and 52-week low is Rs 867.82 on BSE.