One share will be offered for every 15 shares held at Rs 1,257, a 14 per cent discount to the closing price for April 30
The rights issue price has been set at Rs 1,257 a share, a discount of nearly 14 per cent to the last closing price of Rs 1,459
The abridged letter of offer, application form of rights issue and rights entitlement letter will be sent to eligible equity shareholders of the company
Partly-paid shares issued under rights will be traded separately
The previous large rights issues by companies have typically had a strike rate of 25-28% from shareholders, which includes the top 10 rights issues including those of the Tata group
Rights issue is a mechanism available for listed firms to raise money by offering existing shareholders new equity shares
The company looks to raise Rs 53,125 crore through this rights issue, which will be the first by RIL in three decades
In August 2019, Group Chairman and Managing Director Mukesh Ambani told shareholders that RIL would be a zero-net debt company before March 2021
The government provided Rs 16,091 crore to PNB and Rs 1,666 crore to United Bank of India in September for enhancing the capital base of these two lenders
Issue closes Tuesday; promoters confident of amassing full subscription
Regulations on rights issue, portfolio managers revamped
Sebi would revise the norms for issuance of shares on right basis to existing shareholders
Telecom companies Vodafone Idea and Bharti Airtel both raised Rs 25,000 crore through a rights issue earlier this year
Currently, the rights issue process takes 55-58 days from the time a company decides to launch the issue till the listing
While the Airtel stock has soared 72 per cent since the issue, that of Voda Idea has dropped to half of where it started off
Currently, it takes 26 days from the notice of the board meeting to the opening of the rights issue
Total mop-up close to breaching 2007-08 high as telecom firms load up on capital
The entitlement ratio of the issue, which will close on April 24, has been fixed at 87 rights shares for every 38 currently held by shareholders.
Nearly Rs 180 billion mopped up this year, 2.7 times last year's tally; spike in market volatility a key reason
Individually, Sun Pharma Advanced Research Company is planning to mop up Rs 250 cr, while Fortune Financial intends to garner Rs 204 cr