InvestorQ : What is the idea behind the Reliance rights issue that is being proposed to be taken up on 30 April meeting of RIL?
Anu Biswas made post

What is the idea behind the Reliance rights issue that is being proposed to be taken up on 30 April meeting of RIL?

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Neelam Naik answered.
2 years ago
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While there is no official confirmation yet, it is strongly expected that Reliance Industries may be considering its first rights issue in over 30 years. This is likely to be announced when it meets on 30 April to consider the quarterly and full year results. Analysts are expecting a 5% equity dilution at a discount of 10% to the current market price. At the current market cap of RIL, even a 5% rights dilution should enable the company to raise over Rs.40,000 crore via rights. That will give RIL an additional source of inflows and puts it on target to become zero net debt company by 2021. Currently, Reliance has net debt levels of Rs.154,000 crore; largely on account of massive investments in upgrading the refining business and setting up the telecom and data business. So far, RIL has sunk Rs.575,000 crore as fresh investments in the last five years. So, a rights issue could be on the cards.

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