Reliance Industries Limited announced today that it has successfully closed the biggest rights issue in India of Rs 53,124.20 crore. It has been subscribed approximately 1.59 times, accumulating a global commitment of more than Rs.84000 cr.
The rights offering has attracted strong investor interest, including thousands of small investors and thousands of institutional investors, both Indian and foreign. The public part of the Rights issue has been subscribed 1.22 times. The allocation of participating shares will take place around June 10, 2020. Rights shares must be listed in the BSE and NSE on or around June 12, 2020, under a separate ISIN code.
The Rights Entitlement (RE) was actively negotiated, reflecting a broad interest in the issuance of rights. This is the first time that RE has changed in the form of a demat on the stock exchanges since SEBI introduced this platform and it was a resounding success.
A unique feature of RIL’s rights offering was that, despite its record scale, it was entirely done on a digital platform, defying the formidable constraints imposed by the COVID-induced blockade. And that was also a new record in the history of the Indian and global financial markets.
None of the stakeholders in 800 Indian cities and many overseas financial centers (regulators, bankers, financial institutions, retail investors and others) had to leave their offices or homes, and yet everything related to the issue of Rights were carried out smoothly and with the utmost care Efficiency. This shows not only the power of the emerging digital age, but also the potential of India to be a pioneer and innovator at the time.
RIL is India’s largest private sector company, with a consolidated turnover of INR 659,205 crore ($87.1 billion), cash profit of INR 71,446 crore ($9.4 billion), and net profit of INR 39,880 crore ($5.3 billion) for the year ended March 31, 2020.
RIL’s activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and digital services.
RIL is the top-most ranked company from India to feature in Fortune’s Global 500 list of ‘World’s Largest Corporations’ – currently ranking 106th in terms of both revenues and profits. The company stands 71st in the ‘Forbes Global 2000’ rankings for 2019 – top-most among Indian companies. It ranks 10th among LinkedIn’s ‘The Best Companies to Work For In India’ (2019).