Reliance Partly Paid Shares to list on 10-December
The 18 month old Reliance Industries rights issue finally came to a conclusion with the partly paid up shares listing as fully paid up shares of Reliance on 10-December. According to the NSE circular on the subject, a total of 41,87,97,736 shares will additionally list on 10-December under the original Reliance demat ISIN code of INE002A1018.
The partly paid up shares of Reliance had ceased to trade on the stock exchanges on 09-November since 10-November had been fixed as the record date for the rights.
Reliance had fixed the period of November 15 to November 29 for eligible rights shareholders to pay up the balance amount and take full delivery of shares. With this, the entire rights shares of Reliance have listed as fully paid up shares under the original RIL ISIN code.
The rights issue was made at a price of Rs.1,257 per share so the shares have nearly doubled at the current market price of Rs.2,435 for Reliance Industries. The infusion of these 41.88 crore fresh shares will expand the capital base of Reliance and also expand the market cap.
According to the BSE, the expanded market cap of RIL stands at Rs.16.50 trillion and the RIL market cap is now 23% higher than TCS, the second most valuable company in India.
Due to the enhanced free float of Reliance Industries post the listing of the rights, the weightage of RIL in the benchmark indices is likely to go up further.
In addition, this will also lead to increased allocation to Reliance by index funds, index ETFs and global flows benchmarked to the MSCI India index. The total flows are estimated at Rs.2,800 crore.
Quick recap of the mega rights issue of RIL
The Rs.53,124 crore rights issue made in May 2020 was priced at Rs.1,257 per share (Rs.10 of par value plus Rs.1,247 premium). Rights monies was payable in 3 tranches as under.
a) An amount of Rs.314.25 per share (25%) comprising of par value of Rs.2.50 and premium of Rs.311.75 was payable on application by the eligible rights shareholders.
b) The first call amount of Rs.314.25 per share (25%) comprising of par value of Rs.2.50 and premium of Rs.311.75 was payable between 17-May 2021 and 31-May 2021.
c) The second and final call amount of Rs.628.50 per share (50%) comprising of par value of Rs.5.00 and premium of Rs.623.50 was payable between 15-November 2021 and 29-November 2021.
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