RIL clarifies on fractional entitlement in rights issue

Source : IANS
Author : IANS
Last Updated: Thu, May 14th, 2020, 10:47:33hrs
RIL clarifies on fractional entitlement in rights issue

Mumbai: Clarifying on its rights issue, Reliance Industries Limited (RIL) has said that shareholders whose fractional entitlements are being ignored will be given preferential consideration.

In a filing with the stock exchanges, RIL said that if the shareholding of any eligible equity shareholder is less than 15 equity shares or is not in the multiple of 15 equity shares, the fractional entitlement of such eligible equity shareholder shall be ignored for the computation of the rights entitlement.

However, the eligible equity shareholders whose fractional entitlements are being ignored, will be given preferential consideration for the allotment of 1 additional rights equity share each if they apply for additional rights equity shares over and above their rights entitlement.

However, this will be subject to availability of additional rights equity shares in this rights issue, the RIL said.

Since the ratio of rights issue is 1:15, some shareholders may be holding shares which are not in multiple of 15. Others may be having shares which are less than 15.

This fractional entitlement provision is meant for the benefit of such shareholders, clarifying what will be the arrangement for the subscription and allotment.

Shareholders can apply for 1 rights issue share for every 15 shares held. The record date is May 14 and the issue price is fixed at Rs 1,257 per rights equity share.

On application, the shareholders will pay Rs 2.50 on face value and Rs 311.75 on premium, totaling to Rs 314.25 per rights equity share.

The remaining Rs 942.75 will be payable in one or more subsequent calls as determined by the board of directors from time to time.