The rights issue of Reliance Industries (RIL), which will close on Wednesday, was subscribed 1.1 times till Monday.
According to data with the stock exchange, bids were received for 46.04 crore equity shares as against 42.46 crore shares on offer.
Further, while the BSE has received applications for 44.85 crore shares, bids for 0.57 rights shares were received in the National Stock Exchange (NSE).
According to market participants, the rights issue has been oversubscribed since the shareholders are applying for a higher number of shares than their entitlement.
They further said that the over subscription numbers will rise further since in rights offerings wherein allotment is assured, a lot of traction is witnessed on the last two days, with institutional investors typically opting to subscribe only on the last day.
Interestingly, the biggest rights issue till date — ₹53,124 crore — was largely expected to witness huge action as the company boasts of over 25 lakh retail investors along with more than 1,700 institutional investors.
Incidentally, this was also the first rights offering in which Rights Entitlements (REs) could be traded on the stock exchange platform, with the total value of such trading pegged around ₹9,500 crore. Trading of REs ended on May 29.
Reliance Industries announced a rights offering in the ratio of 1:15 while allowing shareholders to pay the issue price of ₹1,257 in three instalments spread over 18 months.
While 25% has to be paid along with the application, another 25% has to be paid in May 2021 and the balance 50% will have to be paid in November 2021.