Mumbai: The Board of Reliance Industries Ltd (RIL) on Thursday approved a Rights Issue of up to Rs 53,125 crore at Rs 1,257 per share.
In a regulatory filing, RIL said: “At its meeting held today, i.e., April 30, 2020 considered and approved, amongst others, the issuance of equity shares of Rs 10/- each of the Company on rights basis to eligible equity shareholders of the Company as on the record date (to be notified later), of an issue size of Rs.53,125 crore.”
The rights entitlement ratio would be 1 equity share for every 15 equity shares held by eligible shareholders as on the record date.
The proposed Rights Issuance will be the first by RIL in three decades. The issue will be structured as partly paid shares and will enable shareholders to phase out the outlay on their investment over a period of time.
On the terms of payment of issue price, the filing said that 25 per cent would have to be paid on application and balance in one or more calls as may be decided by the Board or the Committee of the Board from time to time.
The Board also constituted a ‘Rights Issue Committee’ to decide the other terms and conditions of the issue including the record date. (IANS)