Competition to buy shares of Reliance, subscribed by right issue

Competition to buy shares of Reliance, subscribed by right issue

India ‘s richest businessman Mukesh Ambani ‘s Rs 53,124-crore rights issue was subscribed 1.1 times on Monday, two days prior to the closing. That has been informed by the stock market data available. Bids were received for 46.04 crore shares compared to the bid of 42.26 crore shares, which is 8.9 per cent higher than the bid, according to the details. 44.85 Crore Exchange Bids. Bids were received for 44.85 crore shares on BSE. Apart from this, bids were received for 0.57 crore shares on NSE and 0.62 crore shares through R-WAP through the registrar. There are two days left for the company to place bids for this issue. In general, it is seen in such cases that institutional investors place bids in the last days. With this, it is certain that this issue of Reliance Industries is going to be multiplied and subscribed.

Mukesh Ambani and the group of promoters have said they will subscribe the whole amount of their share. Apart from that they must also subscribe to it if any part remains. A substantial number of shareholders are in Reliance Industries. Those involve over 25.4 lakh shareholders in the retail sector and over 1,700 institutional investors. Sources regarding the company’s future say that over-subscribing at this level demonstrates the confidence of shareholders of all categories in the future of the company. It is far higher than the subscriptions received by any other question of rights raised in recent times. Bharti Airtel and Vodafone Idea’s rights issues were previously subscribed by five to eight per cent more.

RIL shares closed at Rs 1520.45 on BSE on Monday on BSE in debt payment of Rs 39755 crore. According to the issue document, the company will use three-fourths of the proceeds from it to reduce its debt level. The company expects to get Rs 53,036.13 crore from this issue after legal and other expenses. Of this, Rs 39,755.08 crore will be used to pay the old debt and the remaining Rs 13,281.05 crore will be used for general corporate purposes.