Reliance Industries (RIL) rights issue is scheduled to open for subscription for shareholders of the company from 20 May to 3 June. Those who wish to participate in the company's mega Rs 53,125 crore rights issue will have to pay only 25 percent of the subscription amount and the balance will have to be paid in two instalments in May and November next year, the company said.
As part of the rights issue, one share will be offered for every 15 shares held at Rs 1,257.
"The rights issue committee of the board of directors, in its meeting held on May 17, 2020, has proposed the following schedule for payment of the balance amount of Rs 942.75 per rights equity share - Rs 314.25 i.e. 25 percent in May 2021; and Rs 628.50 i.e. the balance 50 percent in November 2021," the company said in its regulatory filing.
The board, it said, would make the calls for this purpose at the relevant time.
Billionaire Mukesh Ambani's firm had on 30 April announced fund raising of Rs 53,125 crore by way of a 1:15 rights issue - India's biggest and first such issue by the firm in nearly three decades.
One share will be offered for every 15 shares held at Rs 1,257, a 14 percent discount to the closing price for 30 April. Reliance Industries' share price has since risen to Rs 1,458.90 (Friday's closing price), but rights issue price remains the same.
The rights issue is being seen as an attempt to reward the shareholders, cut debt at the group and promoters faith in the Reliance growth story. Promoter Ambani family has under-written the entire rights issue, pledging to buy shares that are unsubscribed.
The last time RIL tapped the public for funds was in 1991 when it had issued convertible debentures. The debentures were subsequently converted into equity shares at Rs 55 apiece.
With inputs from PTI