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Important Things to Know About Reliance Industries Right Issue May 21 2020Right Issue

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Important Things to Know About Reliance Industries Right Issue

From an energy giant to a telecom giant, Reliance Industries Ltd. will open its Rs. 53,125 crore right issue on 20th May 2020. As an investor, there are few things that you must know before applying for the right issue. They are as follows;

· The record date for applying for the right issue is 14th May. If you are holding shares in the demat account on the record date, you can apply for the issue starting on 20th May and closing on 3rd June 2020.

·  The right issue of Rs. 53,125 crore shall issue 42,26,26,894 equity shares of the face value of Rs. 10 each.

· The right issue price is Rs. 1,257 per share and the company will offer 1 share for every 15 shares held by the eligible shareholders.

· The existing shareholders of the company can apply for the right issue by paying just 25% of the issue amount i.e. 314.25 per share (25% of Rs. 1,257) is to be paid now. The balance amount would have to be paid in the form of two installments in the next year in May and December.

· The shareholders of Reliance Industries will receive 1 rights entitlement (RE) in the demat account for every 15 shares. The REs are temporary demat securities and will lapse if it is not exercised or renounced.

·  The shareholders of RIL can apply for the right issue via two online methods. The first method is using the internet banking account or ASBA. The second method is through the RTA website. You visit the website by clicking on this link https://rights.kfintech.com/.

·         The purpose of the right issue is to bring down the net debt of Reliance Industries Ltd. Mukesh Ambani had earlier unveiled the plan of the company to become debt-free by 2021.

For more information about the stock market, you can get in touch with Indira Securities.

 

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