The oil to telecom conglomerate Reliance Industries on Monday said it will announce Q4 results on April 30, 2020. Also, on the same day it will consider rights issue for the existing shareholders of the firm.
This rights issue shall be the company's first in a span of 29 years. Through a stock exchange filing on Monday, RIL said its board will "consider a proposal to issue equity shares to existing shareholders on rights basis".
The company has not disclosed the amount of money it plans to raise through the rights offer, or any other details about it.
Also, the company will declare dividend on equity shares. In the last ten days, the stock of RIL has rallied by as much as 25%, erasing most of its losses due to Covid 19 sell-off.
The step is in the direction to make the company debt free by March 2021 and if there is dilution of 5% then Rs. 40000 crores can be raised from the issue.
Morgan Stanley remains overweight on the stock of Reliance Industries considering the company's consideration of rights issue and sees it to be earnings accretive and can help the company pare its debt by any way between 4-30%.