Reliance Industries goes ex-right; share price falls 1%

Reliance Industries (RIL) share price fell over 1 percent in early trade on May 14 as the company’s share goes ex-right today.

On April 30, the company announced fundraising by way of rights issue along with its Q4 FY20 numbers.

The company had announced fundraising of Rs 53,125 crore via 1:15 rights issue and fixed May 14 as the record date.

One share will be offered for every 15 shares held at Rs 1,257, a 14 percent discount to the closing price for April 30.

Also Read: RIL to raise Rs 53,000 crore via 1:15 rights issue at Rs 1,257 a share

The company reported a consolidated profit of Rs 6,348 crore during the January-March quarter 2020, registering a decline of 45.5 percent QoQ and 38.7 percent YoY.

The loss was primarily driven by a slump in oil prices, however, Jio Platforms' impressive 72.7 percent sequential growth limited the decline.

Also Read: RIL Q4: Healthy growth in Jio and retail, talks with Aramco on track; 7 key takeaways

"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," the company said in the release.

However, the eligible equity shareholders whose fractional entitlements are being ignored will be given preferential consideration for the allotment of 1 (one) additional rights equity share each if they apply for additional rights equity shares over and above their rights entitlement, if any, subject to availability of additional rights equity shares in this rights issue, it added.

On May 13, company allotted 1,00,600 unsecured redeemable non-convertible debentures (NCDs) of the face value of Rs 10,00,000 each, aggregating Rs 10,060 crore (PPD Series M Debentures), issued on private placement basis.

At 09:20 hrs, Reliance Industries was quoting at Rs 1,475, down Rs 21.40, or 1.43 percent on the BSE.