Reliance Industries Ltd. Rights Issue

With signs of relaxation of Lockdown norms becoming evident, businesses are already looking to make their losses for the past few months. In the face of this bleak period that the country is going through, the only way forward is to look ahead at restructuring and reinforcing processes and setting new realistic targets. At the same time, a limping economy comes to life again.

At this time, the Industry Giant, Reliance is offering partly paid up rights shares to its shareholders in the ratio of one stock for every 15 shares held at a price of Rs. 1257/-. The issue opened for subscription on the 20th of May, 2020, and will close on the 3rd of June,2020. The initial payment is only 25% of the fixed price on the application now, i.e., Rs.314.25/- only. On allotment, the balance amount would be payable next year in May and November. This is quite a breather given to the investor.

SEBI has, as a particular case, modified the payment procedure during this Lockdown. An applicant can now directly log on to the RTA’s website for making the application money payment by using this payment gateway. The online process is straightforward.

Step 1.Click on the following website: https://rights.kfintech.com.

Step 2. Click on R-WAP APPLY FOR RIGHTS ISSUE.

STEP 3.Application form opens…..fill in your DP ID CLIENT ID and PAN number and SUBMIT.

Step 4.The next page shows the number of shares you are eligible for and the amount payable. You can apply for new the number of shares and accordingly proceed to pay the amount shown therein. On successful payment, you will receive your application number. Please note additional shares applied for will be allotted subject to the availability of shares out of the unsubscribed portion of shares.

Investors need to know that Reliance Industries’ debt status at the end of the quarter ending March 2020 is Rs 1,61,035. In all probability, this debt made the Company launch the Rights Issue to raise more capital.

The process, as mentioned earlier, is for online payments. In case of application to be submitted physically, the ASBA process is available. Please note that amount of application money is to be paid from the account linked to the DEMAT account. Otherwise, the application will be rejected. The date of allotment has been fixed as the 10th of June,2020. The shares will be credited on the 11th of June,2020, and the partially paid shares will be listed on the 12th of June,2020. A separate ISIN will be allotted to the partially paid shares, and both the fully paid and partially funded share prices will be shown separately.

This is a brief list of this upcoming Rights Issue by Reliance. The country is looking forward to more such news as a welcome sign that a positive sign is just around the corner.