The rights issue valued at ₹53,125 crore, will be open for subscription today and it will close on 3 June. All eligible shareholders as per record date of 14 May are entitled to subscribe to the fresh issue (Photo: Reuters)

Reliance's rights issue subscribed 0.27% on Day 1

2 min read . Updated: 20 May 2020, 08:39 PM ISTAshwin Ramarathinam

RIL will issue 42,26,26,894 equity shares as part of the rights issue. The company will offer existing shareholders one new share for 15 held at a discounted price of ₹1,257

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Reliance Industries Limited

MUMBAI : Reliance Industries Ltd's rights issue which opened for subscription on Wednesday was subscribed 0.27% as of 5 pm on he first, according to data from stock exchanges.

The rights issue valued at ₹53,125 crore, will be open for subscription today and it will close on 3 June. All eligible shareholders as per record date of 14 May are entitled to subscribe to the fresh issue.

To be sure, the subscription numbers for first day don't reveal much about investor interest as institutional investors, which form chunk of the subscribers, tend to invest only towards the last days of such offerings.

Shares of RIL closed at ₹1434.65 up 1.88% from its previous close, while the benchmark index, Sensex gained 2.06% to close at 30818.61 points.

RIL will issue 42,26,26,894 equity shares as part of the rights issue. The company will offer existing shareholders one new share for 15 held at a discounted price of ₹1,257.

The promoter and promoter group of the company have confirmed they will subscribe to the full extent of their aggregate rights entitlement. In addition, they will also subscribe to all the unsubscribed shares in the issue.

Shareholders will only have to pay 25% of the total subscription amount and the balance will have to be paid by shareholders in two installments in May 2021 and November 2021 respectively, as per the company's filing.

Mukesh Ambani had in August last year unveiled plans to cut debt to zero by 2021. As part of this plan, RIL has been seeking strategic partnerships across its businesses while targeting to deleverage the balance sheet.

Ahead of the rights issue, RIL has struck four deals selling minority stakes in Jio Platforms to foreign investors and raised ₹67,195 crore. Latest ₹6,598.38 crore investment by General Atlantic, a leading global growth equity firm, for 1.34 per cent stake, values Jio Platforms at an equity value of ₹4.91 trillion and an enterprise value of ₹5.16 trillion.