RIL'S rights issue of Rs 53,124 crore oversubscribed

On June 03, 2020, Reliance Industries Limited announced the closure of its rights issue of Rs 53,124.20 crore. It was the largest rights issue in India and the fact that it came from the largest market capitalisation company of the nation was not a surprise at all. The company believes that it was also the largest rights issue in the world by any non-financial company in the last ten years.

Even in times of market uncertainty, largely led by COVID-19 pandemic, this rights issue got an astounding response and was subscribed about 1.59 times. The public portion of the subscription also witnessed a good response of 1.22 times subscription, reflecting the positive sentiments of the investors towards the growth prospects of the company. The allotment of equity shares is expected to finish around June 10 with subsequent listing on BSE and NSE around June 12. 

The rights issue will be listed under a separate ISIN. After SEBI's introduction of the reform, this was the first time a rights entitlement (RE) was traded in dematerialised form on stock exchanges.

Reliance Industry has been on a fund-raising marathon since the start of the year. Previously, global tech giant Facebook had invested about Rs 43,000 crore in the company's Jio platform for a 9.9 per cent stake, followed by various international names. The company's stock has reacted favourably to the fund-raising activities of the company and has given an absolute return of 13.05 per cent from April 22 to June 03 (taking closing prices), i.e since the first fund-raising of this year.

Reliance Industries, the largest market cap company listed in India, has a weight of about 11.88 per cent in the Nifty 50. Any positive movement in the stock has a noteworthy effect on the index too. This year till date, Reliance has seen a low of Rs 875.65 and a high of Rs 1,615 on NSE.