Reliance Industries to use rights issue to repay debt

Reliance Industries to use rights issue to repay debt
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Reliance Industries to use rights issue to repay debt
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Reliance Industries will use three-fourth of proceeds of its mega rights issue for repayment of some of its borrowings, according to offer document

New Delhi: Reliance Industries will use three-fourth of proceeds of its mega rights issue for repayment of some of its borrowings, according to offer document.

The company expects net proceeds of Rs 53,036.13 crore from the rights issue that opens on May 20 and closes on June 3. Out of these, Rs 39,755.08 crore would go towards repayment/ prepayment of all or a portion of certain borrowings availed by company, it said.

The remaining Rs 13,281.05 crore would be used for general corporate purposes. Shareholders will have to pay only 25 per cent for subscribing to the company's mega Rs 53,125-crore rights issue, and the balance will have to be paid in two installments in May and November next year, the company said.

One share will be offered for every 15 shares held at Rs 1,257. Of the Rs 1,257 per share price, only 25 per cent is to be paid at the time of subscription. A similar amount will be due for payment in May 2021 and the balance 50 per cent has to be paid in November 2021, the company said.

"On Application, investors will have to pay Rs 314.25 per rights equity share, which constitutes 25 per cent of the issue price and the balance Rs 942.75 per rights equity share which constitutes 75 per cent of the issue price, will have to be paid, on one or more subsequent call," it said.

In May 2021, they will have to pay Rs 314.25, and balance Rs 628.50 is to be paid in November 2021. The last date for shareholders wishing to do an onmarket renunciation is May 29.

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