Though confirmed details of this potential deal with Oaktree-backed consortium has not yet been revealed, shares of Vodafone Idea rose as much as 4.4%

Reliance Industries achieves successful closure of India’s largest ever Rights Issue of Rs. 53,124.20 crores

Reliance Industries Limited announced that it has achieved successful closure of Rights Issue of Rs. 53,124.20 crore. The company claims this to be India’s largest-ever Rights Issue.

Reliance reveals that it was subscribed approximately 1.59 times, cumulating to an overall commitment of over Rs.84,000 crore.

The Rights Issue saw a huge investor interest, including from lakhs of small investors and thousands of institutional investors, both Indian and foreign.

The public portion of the Rights issue was subscribed 1.22 times, says Reliance.

The allotment of equity shares will happen on or about 10th June 2020. The rights shares are expected to be listed on the BSE and NSE on or around 12th June 2020 under separate ISIN.

Reliance says that in line with the efforts to create awareness about the Rights Issue, the company launched a highly innovative campaign using broad-based and multiple means of communication. These included television, radio, print, digital and social media, first-of-its-kind AI-based chatbot, emails, and SMS to reach out to the shareholders.

The Rights Entitlement (RE) was actively traded reflecting a broad-based interest in the Rights Issue. This is the first instance of RE’s being traded in Demat form on the stock exchanges since SEBI introduced this platform and it was a resounding success.

Commenting on the success of the Rights Issue, Mukesh Ambani, Chairman and Managing Director of Reliance Industries Limited, said, “I express my sincere thanks to our dear and esteemed shareholders for participating in this Rights Issue and making it a new and proud landmark in the history of India’s capital market.

Ambani further disclosed, saying, “A unique feature of RIL’s Rights Issue was that, despite its record-setting magnitude, it was completed entirely on a digital platform, defying the formidable constraints imposed by the COVID-induced lockdown. And this too was a new record in the history of Indian and global capital markets.

None of the stakeholders across 800 Indian cities and many financial centres abroad — regulators, bankers, financial institutions, retail investors and others — had to step out of their offices or homes, and yet everything related to the Rights Issue was conducted smoothly and with utmost efficiency. This shows not only the power of the emerging digital age, but also the potential of India to be a pioneer and an innovator in this age. ”

Ambani further said, “The success of RIL’s Rights Issue, seen in the context of the prolonged nationwide lockdown necessitated by the COVID-19 pandemic, is also a vote of confidence, by both domestic investors, foreign investors, and small retail shareholders, in the intrinsic strength of the Indian economy. I have no doubt that the Indian economy will bounce back to follow a high-growth trajectory in the time to come, and make India a leading Digital Nation in the World.”

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