Reliance Industries Limited (RIL) is planning to complete a capital raise of over Rs. 104,000 crore by Q1 2020 including rights issue, Facebook investment and the previous investment by British Petroleum (BP) in FY 2019-20. 

 

Reliance Industries Limited (RIL) has announced India's biggest rights issue of Rs. 53,125 crore - ratio of 1:15 at a price of Rs. 1,257 per share.    

 

The proposed Rights Issuance will be the first by RIL in three decades. The issue will be structured as partly paid shares and will enable shareholders to phase out the outlay on their investment over a period of time. S&P and Moody’s have both reaffirmed Reliance’s investment grade ratings. 

 

Rights issue to enable participation of all shareholders in growth businesses of Reliance Industries. Promoters to subscribe their full entitlement of the rights issue and also to all the unsubscribed portions. The company plans to receive Rs. 43,574 crore from Facebook for a 9.99% stake in Jio Platforms.  

 

Commenting on the rights issue, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries said, "We are fully committed to our investment plans in our consumer businesses and new initiatives. We are at the doorsteps of a huge opportunity and our rights issue and all other equity transactions will strengthen Reliance and position us to create substantial value for all our stakeholders."

 

"Transformative strategic investments in Consumer facing business have firmly re-positioned Reliance as India’s pre-eminent consumer/technology company. Jio and Retail platforms underpin Reliance’s participation in the next leg of value creation in India. As new strategic investors look to partner and add-value to these growth engines, the rights issue enables all shareholders to participate in growth of the consumer/technology business," added Ambani.