On Saturday, in a stock exchange filing, Reliance Industries Limited (RIL) said that its Rights Issue Committee of the Board of Directors in its meeting held on the previous day has decided that its Rs 53,125 crore rights issue will open on 20 May and close on 3 June.
RIL's shares went ex-rights on 14 May and was the record date to determine the shareholders to be eligible for the biggest ever rights issue in India.
"Abridged Letter of Offer, Application Form of Rights Issue, and Rights Entitlement Letter, to be sent to the eligible equity shareholders of the Company," RIL said in its statement on Saturday.
One share will be offered for every 15 shares held at Rs 1,257, a 14 per cent discount to the closing price for 30 April, the day it announced the decision to raise funds with Rights Issue of 42,26,26,894 equity shares of the face value of Rs 10 each.
Shares under rights issue are issued at a price lower than the market rate. As a rights issue leads to the creation of new shares that are offered to existing shareholders (at discounted rates) it dilutes the value of the previously held shares.
It is the RIL's biggest ever rights issue and is expected to be part of its plans to become a zero-debt company by the end of the current financial year. It is a credit positive for the company whose earnings may fall for the current quarter due to the unprecedented effects of COVID-19.
Jio Platforms recently raised Rs 60,596 crore from US investors- Facebook, Silver Lake and Vista Equity Partners, making the future prospects of the company attract for those who participate in the rights issue.