Regulatory filings at the stock exchange show that the Ambani family, promoters of the Reliance Industries Limited (RIL) picked up additional shares from the unsubscribed portion of the recent rights issue, raising their stake in the conglomerate to nearly 50 percent of the paid-up equity capital.
The stake of Billionaire Mukesh Ambani and his family members has increased to 49.14 percent after the conclusion of the partly paid-up rights issue, whose allotment was completed on 11 June. The family committed to investing Rs 28,286 crore and subscribed to 225 million shares in the Rs 53,124 crore issue that was open for the public between 20 May and 3 June.
The shares of the rights issue will be issued on the stock exchanges on 15 June in the list of 'A' Group of Securities.
Previously, the promoter family had reduced their stake in the company from 51.37 percent in June 2008 to 44.71 percent in September 2011. Their stake has been gradually increasing. The family had also purchased shares of RIL in the month of March this year, around the time when share price of the company had hit 52-week lows.
On Friday, shares of RIL closed at Rs 1,588.70, around 82 percent higher than Rs 875.72 on 23 March. As on 12 June, the Reliance Industries Limited's valuation stands at Rs 10.74 lakh crore, the most valued company in India, in terms of market cap.
Experts say that promoters infusing money into their own business is considered positive for the stock as it shows their commitment to their company's growth. Further, the eight back to back investment deals from foreign investors in its digital arm Jio Platforms has also increased confidence among investors. The investor confidence was also visible in the strong response to RIL's rights issue.