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At ₹53,125 crore, India’s biggest equity offering by Reliance Industries Ltd, in the form of a rights issue, opened on May 20. The rights entitlements (RE) for the issue closed at a 40 per cent premium.
The counter closed the day at ₹212 against the previous close of ₹151.
The difference between the closing price on Wednesday and rights issue price stood at ₹180.3. On Wednesday, RIL shares closed at ₹1,437.30. The rights issue price is ₹1,257.
The premium showed that investors were willing to pay a price above the issue price.
The RE trading allows RIL shareholders to trade their rights and renounce their entitlement. The issue will close on June 3. The company is offering one share at ₹1,257 to shareholders for every 15 held. It will issue 42,26,26,894 equity shares of face value ₹10 each. Shareholders will have to pay only 25 per cent or ₹314 to subscribe to the issue and the balance in two instalments next year.
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