Why This Ambani Company Shares Stopped Trading on Bourses?

Mukesh Ambani led company shares of Reliance Industries Ltd stopped trading on indices. Reliance Industries Partily Paid up shares stopped trading on 10th May 2021. These shares stopped trading due to suspension on account of procedural reasons. These Partly Paid up Shares made a 52 week low of Rs 665 and a Rs 1469.95. After opening up on the last trading session at a price of Rs 978.10 it made a high of Rs 1004.5 and low for Rs 974.50 and ended up at Rs. 982.05 with a volume of 2.05 lakhs on BSE Index.

What are partly paid shares ?

PP or Partly paid shares refer to a share if its face value if of Rs. 10 and from the investor only Rs. 2.50 has been called. The company has the option to take the balance Rs. 7.50 as and when the company is in need of funds.

Reliance Industries Rights Issue

In the aim of making Reliance Industries a debt free company Reliance Industries has turn up to right Issue Of 42,26,26,894 Partly Paid-Up Equity Shares Of Face Value Of Rs.10 Each Of Our Company For Cash At A Price Of rs.1,257 Per Rights Equity Share (Including A Premium Of Rs. 1,247 Per Rights Equity Share) Aggregating To Rs. Rs 53124 Crores On A Rights Basis To The Eligible Equity Shareholders Of Our Company In The Ratio Of 1 (One) Rights Equity Share For Every 15 Fully Paid-Up Equity Shares Held By The Eligible Equity Shareholders Of Our Company On The Record Date, That Is, On May 14, 2020 (The "Issue").

The company Reliance Industries, has now been asking for the 1st Call money of Rs. 2.5 each in the Notice for payment of first call on partly paid-up equity shares issued by Reliance Industries Limited on rights basis, pursuant to the letter of offer dated May 15, 2020.

The Board of Directors of the Reliance Industries at its meeting held on March 26, 2021 made the following call on the Rights Equity Shares 1. First call of Rs. 314.25 per Rights Equity Share (comprising Rs. 2.50 towards face value and Rs. 311.75 towards securities premium), payable from Monday, May 17, 2021 to Monday, May 31, 2021, both days inclusive (First Call).

Eligible Shareholders who are required to pay 1st Call Money.

The Company has fixed May 12, 2021 as the record date ("Call Record Date") for the purpose of determining the holders of the partly paid-up equity shares ("Eligible Shareholders") to whom the notice for the First Call (the "First Call Notice") will be sent. Accordingly, the First Call Notice is hereby given to you to pay the First Call.

Further to explain with an example Mr X hold 150 shares of Reliance Industries in May 2020 before Reliance Issue Right Shares Corporate Action. Now, he became eligible to subscribe 10 shares offered in right issue as per the ratio offered by the company of 1:15. Now after this he added 100 shares of Reliance Partly Paid Shares so he is now required to pay call money on 110 shares in total i.e. for 10 shares offered in right issue and 100 shares which he added while trading in reliance partly paid up shares was traded in exchanges.

What will happen if you don’t pay the First Call Money Rs.314.25?

1. Interest @ 8.00 % (Eight per cent only) p.a. will be payable for delay in payment of First Call beyond May 31, 2021 till the actual date of payment;

2. The Company shall be entitled to deduct from any dividend payable to you, all sums of money outstanding on account of calls and interest due thereon in relation to the partly paid-up equity shares of the Company; and

3. The partly paid-up equity shares of the Company currently held by you, including the amount already paid thereon are liable to be forfeited in accordance with the Articles of Association of the Company and the LOF

When shall the trading again begin on Reliance Industries Partly Paid Up Shares?

After completion of this legal right issue procedure Trading of the ₹ 5.00 partly paid-up equity shares of the Company ("RIL PP-1 Equity Shares") under a new ISIN is expected to commence within a period of 2 weeks from the last date for making the payment of First Call, i.e., within 2 weeks from May 31, 2021