RIL Rights Issue Gets Fully Subscribed Two Days Ahead Of Closing
The biggest rights issue in India was fully subscribed on Monday, two days ahead of its scheduled closure.
According to issue subscription data on the stock exchanges, Reliance Industries Ltd.'s Rs 53,124-crore rights issue received bids for Rs 46.06 crore shares against 42.26 crore scrips on offer—indicating 1.1 times subscription.
The Bombay Stock Exchange has received applications for 44.85 crore rights shares, while the National Stock Exchange got applications for 0.57 crore.
RIL has a very large number of shareholders—more than 25.4 lakh retail shareholders and over 1,700 domestic and foreign institutional investors. Chairman Mukesh Ambani and the promoter group had pledged to subscribe to the full extent of their rights entitlements any unsubscribed portion of the issue.
The subscription numbers of RIL’s rights issue are better than any such comparable offerings in the recent past. It is more than double the size of similar issues by Bharti Airtel Ltd. and Vodafone Idea Ltd.
The RIL rights issue, a first in three decades and the largest ever by an Indian company, will close on June 3. The shares in the offering are priced at Rs 1,257 apiece.
On Monday, RIL's share price rose 3.77% to Rs 1520.45 apiece on the BSE while the benchmark Sensex gained 2.71% to end the day at 33,303.52 points.