The rights issue of Reliance Industries was subscribed 1.6 times as it closed at 5.30 pm on Wednesday. The issue was opened for the subscription of shareholders on May 20.
In a regulatory filing, the oil-to-digital conglomerate said, “It (rights issues) was subscribed approximately 1.59 times, cumulating to an overall commitment of over Rs.84,000 crore. The Rights Issue saw a huge investor interest, including from lakhs of small investors and thousands of institutional investors, both Indian and foreign.”
“The public portion of the Rights issue was subscribed 1.22 times,” it added
The company said, a unique feature of RIL’s Rights Issue was that, despite its record-setting magnitude, it was completed entirely on a digital platform, defying the formidable constraints imposed by the COVID-induced lockdown.
“I express my sincere thanks to our dear and esteemed shareholders for participating in this Rights Issue and making it a new and proud landmark in the history of India’s capital market,” Mukesh Ambani, Chairman and Managing Director of Reliance Industries Limited was quoted in the statement.
“The success of RIL’s Rights Issue, seen in the context of the prolonged nationwide lockdown necessitated by the COVID-19 pandemic, is also a vote of confidence, by both domestic investors, foreign investors and small retail shareholders, in the intrinsic strength of the Indian economy,” he added.
According to the terms of the offering, buyers will have to pay 25 per cent of the price at the time of subscription, 25 per cent in May 2021 and the rest in November 2021.
The rights issue is a part of the RIL’s strategy of deleveraging its balance sheet to become a zero net debt company by 2021.