The board of Reliance Industries (RIL) on Thursday approved a rights issue of up to Rs 53,125 crore at Rs 1,257 per share.
In a regulatory filing, RIL said: "At its meeting held today, i.e., April 30, 2020 considered and approved, amongst others, the issuance of equity shares of Rs 10/- each of the Company on rights basis to eligible equity shareholders of the Company as on the record date (to be notified later), of an issue size of Rs 53,125 crore."
The rights entitlement ratio would be 1 equity share for every 15 equity shares held by eligible shareholders as on the record date.
On the terms of payment of issue price, the filing said that 25 per cent would have to be paid on application and the balance amount in one or more calls as may be decided by the board or the committee of the board from time to time.
The board also constituted a Rights Issue Committee to decide the other terms and conditions of the issue, including the record date.
The promoter and promoter group of the company have confirmed that they will subscribe to the full extent of their aggregate rights entitlement, RIL said, adding that they will also subscribe to all the unsubscribed shares in the issue.
According to analysts, the rights issue is a major development for RIL towards becoming a zero net debt company.
( With inputs from IANS )