How to apply for RIL rights issue shares

May 26, 2020, 15:40 IST

Mukesh Ambani, chairman and managing director of Reliance Industries LimitedBCCL

Reliance Industries had announced rights issue starting from May 20 through June 3.
Eligible shareholders can apply for RIL rights issue, at ₹1,257 per share.
With this, RIL aims to raise ₹53,125 crore equity, which is the biggest rights issue in India so far.

Reliance Industries (RIL) announced its first rights issue in three decades, aiming to raise ₹53,125 crore equity, making it the biggest rights issue in India.

RIL rights issue applications can be submitted from May 20. With this, the company aims to mop up record equity to reduce its debt and eventually become debt-free by March 2021.

Each RIL rights share price is fixed at ₹1,257. Every RIL shareholder who held 15 shares as of May 14 is eligible to get 1 share at this price. Currently, the RIL share price is in the range of ₹1,440, which is ₹180 higher than the price of rights shares.

What is a rights issue?

Rights shares are the right to purchase the shares of the company, generally at a discounted price. These rights are offered to existing shareholders, and the company uses the funds to further expand its business, or for any other purpose mentioned by it.

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What is the RIL rights issue price?

RIL has fixed the rights issue price at ₹1,257 per share.

Who is eligible to apply for RIL rights issue?

All existing shareholders of RIL as on the record date of May 14 are eligible to apply for RIL rights issue.

How many shares can I apply for RIL rights issue?

RIL is offering 1 new share for 15 existing shares in the company.

So, if you have 15 existing shares, you can apply for 1 rights share at ₹1,257.

Shareholders who want to apply for additional rights shares can do so. However, the allotment depends on RIL.

How much should I pay for the RIL rights issue?

Shareholders can pay for RIL rights issue in instalments.

The first instalment requires you to pay 25% of the rights issue price, i.e., ₹314.25 per share.

It is expected that the second instalment of 25% will have to be paid in May 2021, and the balance 50% in December 2021.

How to apply for RIL rights issue?

There are two ways to apply for RIL rights issue:

1. Through net banking

Login to your bank account online. In this example, we have used ICICI Bank.

Go to the Investments section and click on ‘Invest Online’.
Now, click on ‘Online IPO & Rights Issue’.
Enter the number of rights shares you want to apply for.
Now, enter your Demat Account Number.
Enter the one-time password received on your phone and click on ‘Submit’.

The procedure for HDFC Bank users is:

Go to the accounts section and click on 'Request'.
Now, click on 'IPO Application and Rights Issue' and click on 'Continue'.
Now, click on 'Apply'.
Enter the shares that you want to apply for.
Now, enter your DP ID and click on proceed.

2. Through RTA website

Go to the website https://rights.kfintech.com
Click on ‘Apply for rights issue through RWAP’.
Enter your PAN, demand account number (DPID), Folio number etc.
Make the required payment using net banking or your UPI ID.

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