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Bharti Airtel, Future Retail, RIL and other stocks to watch out for on October 21 as markets remain cautious

<ul><li>Shares of <keyword id="6355199" type="ORGANIZATION" weightage="20" keywordseo="reliance-industries">Reliance Industries</keyword> on Monday gained nearly 2 per cent after the company announced the sale of 1.34 per cent stake in its digital unit to global equity firm General Atlantic for Rs 6,598.38 crore.</li><li>On the NSE, shares of the company went advanced 1.54 per cent to ₹1,482. </li><li>Reliance Industries on Sunday announced the sale of 1.34 per cent stake in its digital unit to global equity firm General Atlantic for ₹6,598.38 crore, the fourth deal in less than four weeks that will inject a combined Rs 67,194.75 crore in the oil-to-telecom conglomerate to help it pare debt.</li></ul>Shares of Reliance Industries on Monday gained nearly 2% after the company announced the sale of 1.34% stake in its digital unit to global equity firm General Atlantic for ₹6,598.38 crore. The heavyweight stock rose by 1.58 per cent to ₹1,482 on the BSE in opening session. On the NSE, shares of the company went advanced 1.54 per cent to ₹1,482. However, as the session progressed, the company surrendered the early gains and was quoting 1.07 per cent down at ₹1,443.25 on the BSE in line with weak market sentiment. Reliance Industries on Sunday announced the sale of 1.34 per cent stake in its digital unit to global equity firm General Atlantic for ₹6,598.38 crore, the fourth deal in less than four weeks that will inject a combined Rs 67,194.75 crore in the oil-to-telecom conglomerate to help it pare debt. "This investment values Jio Platforms at an equity value of ₹4.91 lakh crore and an enterprise value of ₹5.16 lakh crore. General Atlantic's investment will translate into a 1.34% equity stake in Jio Platforms on a fully diluted basis," the company said in a statement. The deal follows Facebook picking up a 9.99% stake in the firm that houses India's youngest but largest <keyword id="6354776" type="COMPANY" weightage="20" keywordseo="Telecom">telecom</keyword> firm on April 22 for ₹43,574 crore. Within days of that deal, Silver Lake - the world's largest tech investor - bought a 1.15 per cent stake in Jio Platforms for ₹5,665.75 crore. On May 8, US-based Vista Equity Partners bought 2.32 per cent stake in Jio Platforms for Rs 11,367 crore. Meanwhile, Reliance Industries' ₹53,125-crore rights issue will open for subscription of shareholders on May 20 and will close on June 3. Shareholders will have to pay only 25% for subscribing to the issue, and the balance will have to be paid in two installments in May and November next year, the company said.

Reliance Industries shares gain nearly 2% after General Atlantic deal

<ul><li>A rights issue is an invitation to existing shareholders to buy more shares at a discount to the market price. </li><li>RIL's investors can subscribe to the right to own <a href="https://www.businessinsider.in/business/corporates/news/ril-rights-issue-ratio-pricing-and-value/articleshow/75474592.cms" data-type="tilCustomLink" target="_blank">one new share for every 15</a> held in the company at ₹1,257 per share, 14% below Thursday’s (April 30) closing price. </li><li>Even if you expect that RIL shares will be worth a lot more in the future, if the share falls to ₹1,257, or below, investors can buy the shares from the market instead of subscribing to the rights.</li></ul>The rights issue announced by one of India's most valued company, Reliance Industries (RIL), will have to conclude by the end of June, as declared by the company. The company owned by Asia's richest man, <keyword id="3820" type="PERSON" weightage="20" keywordseo="Mukesh-Ambani">Mukesh Ambani</keyword>, plans to mop up ₹53,125 crore from shareholders. RIL's investors can subscribe to the right to own <a href="https://www.businessinsider.in/business/corporates/news/ril-rights-issue-ratio-pricing-and-value/articleshow/75474592.cms" data-type="tilCustomLink" target="_blank">one new share for every 15</a> held in the company at ₹1,257 per share, 14% below Thursday’s (April 30) closing price. A rights issue is an invitation to existing shareholders to buy more shares at a discount to the market price. <div type="Article" hostid="261" msid="75474592" title="Mukesh Ambani offers Reliance Industries shareholders 1 new share for every 15 held⁠— at a price 14% below market value" mstype="2" mssubtype="0"></div> How does it work? Since there will be more entering the market, the value of your existing shares will go down. That can be made up via additional shares via rights to make up for the fall. If you had 120 shares on Thursday (April 30), you will get rights to 8 new shares. Theoretically, if the value of RIL shares don't change, the value of 128 shares will be the same as the old 120 shares. While it is difficult to estimate the exact value of the total shareholding (after subscribing for rights)— since it can be affected by business and market factors — the theoretical price of each share can be calculated in the following manner. <table style="border-width: initial; border-style: none; background-color: rgb(255, 255, 255); font-size: 16px; line-height: 1.6em; box-shadow: none; width: 444pt; font-family: Merriweather; padding-bottom: 10px !important; background-image: inherit !important; background-position: inherit !important; background-size: inherit !important; background-repeat: inherit !important; background-attachment: inherit !important; background-origin: inherit !important; background-clip: inherit !important;"></colgroup><tbody><tr><td class="xl64" style="border-width: 1px; border-style: solid; border-color: rgb(221, 221, 221); padding: 5px; font-size: 16px; vertical-align: top; height: 15pt; width: 159pt;">Period</td><td class="xl65" style="border-top: 1px solid rgb(221, 221, 221); border-right: 1px solid rgb(221, 221, 221); border-bottom: 1px solid rgb(221, 221, 221); border-left: none rgb(221, 221, 221); padding: 5px; font-size: 16px; vertical-align: top; width: 98pt;">Shares </td><td class="xl65" style="border-top: 1px solid rgb(221, 221, 221); border-right: 1px solid rgb(221, 221, 221); border-bottom: 1px solid rgb(221, 221, 221); border-left: none rgb(221, 221, 221); padding: 5px; font-size: 16px; vertical-align: top; width: 116pt;">Price</td><td class="xl66" style="border-top: 1px solid rgb(221, 221, 221); border-right: 1px solid rgb(221, 221, 221); border-bottom: 1px solid rgb(221, 221, 221); border-left: none rgb(221, 221, 221); padding: 5px; font-size: 16px; vertical-align: top; width: 71pt;">Value</td></tr><tr><td class="xl67" style="border-top: none rgb(221, 221, 221); border-right: 1px solid rgb(221, 221, 221); border-bottom: 1px solid rgb(221, 221, 221); border-left: 1px solid rgb(221, 221, 221); padding: 5px; font-size: 16px; vertical-align: top; height: 15pt;">Before rights issue</td><td class="xl63" style="border-top: none rgb(221, 221, 221); border-right: 1px solid rgb(221, 221, 221); border-bottom: 1px solid rgb(221, 221, 221); border-left: none rgb(221, 221, 221); padding: 5px; font-size: 16px; vertical-align: top;">120 (assumed)</td><td class="xl63" style="border-top: none rgb(221, 221, 221); border-right: 1px solid rgb(221, 221, 221); border-bottom: 1px solid rgb(221, 221, 221); border-left: none rgb(221, 221, 221); padding: 5px; font-size: 16px; vertical-align: top;">₹1464 (April 30 closing)</td><td class="xl68" style="border-top: none rgb(221, 221, 221); border-right: 1px solid rgb(221, 221, 221); border-bottom: 1px solid rgb(221, 221, 221); border-left: none rgb(221, 221, 221); padding: 5px; font-size: 16px; vertical-align: top;">₹175680</td></tr><tr><td class="xl67" style="border-top: none rgb(221, 221, 221); border-right: 1px solid rgb(221, 221, 221); border-bottom: 1px solid rgb(221, 221, 221); border-left: 1px solid rgb(221, 221, 221); padding: 5px; font-size: 16px; vertical-align: top; height: 15pt;">Rights issue</td><td class="xl63" style="border-top: none rgb(221, 221, 221); border-right: 1px solid rgb(221, 221, 221); border-bottom: 1px solid rgb(221, 221, 221); border-left: none rgb(221, 221, 221); padding: 5px; font-size: 16px; vertical-align: top;">8 (1 share for every 15)</td><td class="xl63" style="border-top: none rgb(221, 221, 221); border-right: 1px solid rgb(221, 221, 221); border-bottom: 1px solid rgb(221, 221, 221); border-left: none rgb(221, 221, 221); padding: 5px; font-size: 16px; vertical-align: top;">₹1257 (set by company)</td><td class="xl68" style="border-top: none rgb(221, 221, 221); border-right: 1px solid rgb(221, 221, 221); border-bottom: 1px solid rgb(221, 221, 221); border-left: none rgb(221, 221, 221); padding: 5px; font-size: 16px; vertical-align: top;">₹10056</td></tr><tr><td class="xl69" style="border-top: none rgb(221, 221, 221); border-right: 1px solid rgb(221, 221, 221); border-bottom: 1px solid rgb(221, 221, 221); border-left: 1px solid rgb(221, 221, 221); padding: 5px; font-size: 16px; vertical-align: top; height: 15.75pt;">Post rights issue</td><td class="xl70" style="border-top: none rgb(221, 221, 221); border-right: 1px solid rgb(221, 221, 221); border-bottom: 1px solid rgb(221, 221, 221); border-left: none rgb(221, 221, 221); padding: 5px; font-size: 16px; vertical-align: top;">128 (sum)</td><td class="xl70" style="border-top: none rgb(221, 221, 221); border-right: 1px solid rgb(221, 221, 221); border-bottom: 1px solid rgb(221, 221, 221); border-left: none rgb(221, 221, 221); padding: 5px; font-size: 16px; vertical-align: top;">₹1451.06*</td><td class="xl71" style="border-top: none rgb(221, 221, 221); border-right: 1px solid rgb(221, 221, 221); border-bottom: 1px solid rgb(221, 221, 221); border-left: none rgb(221, 221, 221); padding: 5px; font-size: 16px; vertical-align: top;">₹185736 (sum)</td></tr></tbody></table> The above calculation assumes that <keyword id="4347449" type="PERSON" weightage="20" keywordseo="RIL-share-price">RIL share price</keyword> doesn't change, which will never happen. So, in fact, you might gain or lose money. Should I subscribe to the rights issue? Depends on the price. Even if you expect that RIL shares will be worth a lot more in the future, if the share falls to ₹1,257, or below, investors can buy the shares from the market instead of subscribing to the rights. The gap between the market price of each RIL share tomorrow and ₹1,257 will be the gain from the additional shares that you get from the rights issue. If the share price falls on Monday (May 3) and the closer it gets to ₹1,257, it will make lesser sense for investors to subscribe to the rights because the room for gains will shrink. How does it affect the company? RIL is expected to use the money received from subscriptions to the rights issue to repay debt. So, the lesser it makes, lesser the debtit can repay. <div type="image" title="ril share price (1)." msid="75518412" hostid="261" caption="&amp;lt;p&amp;gt;RIL is expected to use the money received from subscriptions to the rights issue to repay debt. So, the lesser it makes, lesser the debt&amp;lt;strong&amp;gt; &amp;lt;/strong&amp;gt;it can repay.&amp;lt;/p&amp;gt;"></div> What if the share price falls and shareholders don't subscribe to the rights issue? "The promoter and promoter group of the company have confirmed they will subscribe to the full extent of their aggregate rights entitlement. In addition, they will also subscribe to all the unsubscribed shares in the Issue,” Reliance Industries said in a statement. This means, Mukesh Ambani and his family, who own roughly 50% of RIL will subscribe to all the shares they can under the proposed rights issue, which means the promoters will have to cough up about ₹26,500 crore. They will also have to fill in for any shortfall in demand for rights from other shareholders. Lesser the subscription, more money the promoters will have to put in. SEE ALSO: <a href="https://www.businessinsider.in/business/news/reliance-retails-operating-profit-grows-nearly-20-in-the-latest-fourth-quarter/articleshow/75474722.cms">Reliance Retail’s operating profit grows nearly 20% in the latest fourth quarter⁠⁠</a> <a href="https://www.businessinsider.in/stock-market/news/tech-mahindra-shares-are-cheap-despite-the-earnings-disappointment-says-a-research-report/articleshow/75515809.cms" data-type="tilCustomLink" target="_blank">Tech Mahindra shares are cheap despite the earnings disappointment, says a research report</a> <a href="https://www.businessinsider.in/business/news/hul-fourth-quarter-earnings-report-volume-growth-and-share-price-chart/articleshow/75472021.cms">HUL fourth-quarter volume growth down 7%, profit falls 1%, India sales slide 9% ⁠— as COVID-19 strikes India’s largest consumer firm</a>

Here's how Reliance Industries right issue may affect the share price

<ul><li>The sharp fall in crude oil prices in the first three months of 2020 led to lower realisations across product categories for Reliance Industries.</li><li>The bottomline would have been much worse if not for the consumer-centric businesses like Reliance Jio or Reliance Retail.</li><li>The company's debt reduction plan seems to be on track with a ₹53,000 crore rights issue, following a 9.9% stake sale in Reliance Jio to Facebook</li></ul>India's largest conglomerate by market value, Reliance Industries (RIL) reported a 38.7% drop in fourth-quarter consolidated net profit at ₹6,348 crore on weak energy and petrochemical business while the revenue fell 2.5%, compared to a year earlier. <div type="image" title="ril share price (1)." msid="75475995" hostid="261" caption="&amp;lt;p&amp;gt;RIL share price has gained over 66% value since the low on March 23 as investors. Source: BSE&amp;lt;/p&amp;gt;"></div> The sharp fall in crude oil prices in the first three months of 2020 led to lower realisations across product categories for Reliance Industries, which still derives a big chunk of its revenue from the energy verticals like petrochemicals and refining. "During this period, there has been significant volatility in oil prices, resulting in uncertainty and sharp reduction in oil prices. Through the quarter, oil prices declined 73% impacting inventory valuation. In view of the above, the company has provided for non-cash inventory holding losses for the quarter," the RIL statement said. <div type="Article" hostid="261" msid="75475068" title="Reliance to hive off $75 billion oil-to-chemicals business into separate unit for sale to Aramco" mstype="2" mssubtype="0"></div> The bottomline would have been much worse if not for the consumer-centric businesses like Reliance Jio or Reliance Retail, both of which showed spectacular growth even with the economic slowdown as well as the explosion of the coronavirus crisis towards the end of the quarter. Reliance Jio profits jumped by more than 73% in the fourth quarter, rising to ₹2,331 crore in the last three months. A big chunk of this profit came from the 40% hike in tariffs in December 2019. <div type="Article" hostid="261" msid="75474894" title="After Facebook, Reliance in talks with other investors to offload more stake" mstype="2" mssubtype="0"></div> Reliance Retail has posted an operating profit of ₹2062 crore, <a href="https://www.businessinsider.in/business/news/reliance-retails-operating-profit-grows-nearly-20-in-the-latest-fourth-quarter/articleshow/75474722.cms" data-type="tilCustomLink" target="_blank">up by 19.8% from the same quarter the previous year</a>. The retail arm of Reliance also saw its quarterly revenue jump 4.2% to ₹38,211 crore year-on-year. However, the company still makes over three out of four rupees in revenue from refining and petrochemicals business. The gross refining margin was down 3% in Jan-March 2020, compared to the preceding three months. <div type="image" title="RIL segment growth." msid="75476259" hostid="261" caption="&amp;lt;p&amp;gt;Reliance Industries still makes over three out of four rupees in revenue from refining and petrochemicals business.&amp;lt;/p&amp;gt;"></div> The company's debt reduction plan seems to be on track with a ₹53,000 crore rights issue, following a 9.9% stake sale in Reliance Jio to Facebook, and the continued efforts to sell stake in the oil t0 chemicals (O2C) business to Saudi Arabian refiner Aramco. "In spite of the Covid-19 crisis and the lockdowns, the due-diligence by Saudi Aramco for the planned investment in the O2C business is on track as both the parties are committed and actively engaged," the filing said. SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/reliance-jio-profit-jumps-73-due-to-tariff-hikes/articleshow/75475445.cms" data-type="tilCustomLink" target="_blank">40% tariff hike boosts Reliance Jio’s profit by 73% in just three months ⁠— and there’s a lot more coming from the Mukesh Ambani stable</a> <a href="https://www.businessinsider.in/business/corporates/news/ril-rights-issue-ratio-pricing-and-value/articleshow/75474592.cms" data-type="tilCustomLink" target="_blank">Mukesh Ambani offers Reliance Industries shareholders 1 new share for every 15 held⁠— at a price 14% below market value</a>

Crashing crude oil cracks Reliance Industries fourth-quarter profit by nearly 40%

New Delhi, Jun 11 () Billionaire Mukesh Ambani has got 5.52 lakh shares of his flagship firm Reliance Industries (RIL) in the just-concluded Rs 53,124 crore rights issue, according to the company's regulatory filing on Thursday. Ambani now holds 80.52 lakh shares or 0.12 per cent of RIL, up from 75 lakh shares held before the rights issue. His wife Nita and children Isha, Akash, and Anant too got 5.52 lakh shares each after they subscribed to the rights offering. They too hold 0.12 per cent each in the firm. In all, the promoter group got 22.50 crore shares in the rights issue, taking their shareholding in the firm to 50.29 per cent, marginally higher than 50.07 per cent earlier. Public shareholding marginally reduced to 49.71 per cent from 49.93 per cent, the filing showed. State-owned insurer Life Insurance Corporation (LIC) subscribed to 2.47 crore shares to take its shareholding to 37.18 crore or 6 per cent of the total equity of RIL. In all, public shareholders got 19.74 crore shares. Ambani's firm had on April 30 announced fundraising of Rs 53,124 crore by way of a 1:15 rights issue -- India's biggest and the first such issue by the firm in nearly three decades. One share was offered for every 15 shares held at Rs 1,257, a 14 per cent discount to the closing price for April 30. The issue was over-subscribed 1.6 times, cumulating to an overall commitment of over Rs 84,000 crore. Shareholders paid only 25 per cent for subscribing to the rights issue, and the balance will have to be paid in two installments in May and November next year, the company had previously said. "Pursuant to the board approval, the company had, vide letter of offer dated May 15, 2020, issued 42.26 crore equity shares of the face value of Rs 10 each (rights equity shares) to the eligible equity shareholders at an issue price of Rs 1,257 per rights equity share (including a premium of Rs 1,247 per rights equity share)," the company said. The rights equity shares were issued as partly paid-up and an amount of Rs 314.25 per rights equity share was payable on application (of which Rs 2.50 towards face value of rights equity share and Rs 311.75 towards the premium amount of rights equity share). "The company has, today, on June 11, 2020, allotted 42,24,40,258 rights equity shares to the eligible applicants against the issue of 42,26,26,894 equity shares," it said. Issue of 1,86,636 rights equity shares has been kept in abeyance by the company, pursuant to an order passed by the special court constituted under the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992, it added. It did not give details of the legal case. ANZ ANZ ANS ANS

Mukesh Ambani gets 5.52 lakh shares in RIL rights issue; co allocates shares

The <keyword id="6354977" type="General" weightage="50" keywordseo="supreme-court" source="Orion">Supreme Court</keyword> will hear SEBIs petition, in an open court, seeking review of its August 5 judgment, which directed the market regulator to share certain documents with Reliance Industries Limited (RIL). A bench headed by Chief Justice U.U. Lalit and comprising Justices J.K. Maheshwari and Hima Kohli said: "Considering the facts and circumstances on record and the submissions advanced in the review petition, we deem it appropriate to allow application for listing of the instant petition in open court. Let this review petition be listed in court on October 12, 2022." <keyword id="35210" type="General" weightage="20" keywordseo="SEBI" source="Orion">SEBI</keyword> has refused to entertain RIL's request to share the privileged documents on the grounds that under the Sebi (Settlement Proceedings) Regulations, the accused company has no right to seek information from it. The <keyword id="6356229" type="General" weightage="80" keywordseo="apex-court" source="Orion">apex court</keyword>, in its judgement, had rejected this stand of the market regulator. RIL had claimed that documents will exonerate it and its promoters from criminal prosecution initiated in a case related to the alleged irregularities in acquisition of its own shares between 1994 and 2000. Last week, a bench headed by Justice Sanjiv Khanna had recused from hearing RIL's petition seeking to initiate contempt proceedings against SEBI for failing to provide certain documents to the company. On August 5, a bench led by then Chief Justice N.V. Ramana had said: "The approach of SEBI, in failing to disclose the documents, also raises concerns of transparency and fair trial. Opaqueness only propagates prejudice and partiality. Opaqueness is antithetical to transparency." The top court had said the market regulator should show fairness and furnish documents sought by RIL, and SEBI has a duty to act fairly, while conducting proceedings or initiating any action against the parties. RIL filed a contempt petition as SEBI has not shared three documents -- the two legal opinions by former apex court judge B.N. Srikrishna and former ICAI president Y.H. Malegam's report which examined the irregularities. The company claimed SEBI cannot continue to resist the production of these documents and it had also sent a notice to the regulator saying if documents were not received by August 18, then it will establish that SEBI does not want to comply with the apex court's judgment. In 2002, Chartered Accountant S. Gurumurthy filed a complaint with SEBI alleging irregularities by RIL, its associate companies and their directors/promoters, including <keyword id="3820" type="General" weightage="80" keywordseo="mukesh-ambani" source="Orion">Mukesh Ambani</keyword> and his wife, Nita; <keyword id="9171" type="General" weightage="80" keywordseo="anil-ambani" source="Orion">Anil Ambani</keyword> and his wife, Tina; and 98 others. The complaint cited the issue of two preferential placement of non-convertible debentures in 1994. SEBI had alleged that RIL along with Reliance Petroleum had circuitously funded the acquisition of its own shares in violation of the Sections 77 and 77A of the Companies Act, 1956. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/markets/news/sebi-tightens-disclosure-norms-for-ipo-brings-mutual-fund-transactions-under-the-gambit-of-insider-trading-rules/articleshow/94577801.cms">SEBI tightens disclosure norms for IPOs, brings mutual fund transactions under the gambit of insider trading rules</a> <a href="https://www.businessinsider.in/tech/news/jio-will-launch-5g-for-the-entire-country-by-december-2023-mukesh-ambani/articleshow/94579338.cms">Jio will launch 5G for the entire country by December 2023: Mukesh Ambani</a>

SC to hear SEBI's review petition against RIL on Oct 12

<ul><li><keyword id="6355199" type="ORGANIZATION" weightage="20" keywordseo="reliance-industries">Reliance Industries</keyword>' ₹53,125 crore rights issue will open for subscription on May 20 and close on June 3.</li><li> One will be offered for every 15 shares held at ₹ 1,257 — a 14% discount as per the closing price on April 30.</li><li>The company claims that the rights issue is not about mitigating its debt, but about rewards shareholders.</li></ul> Oil-to-telecom conglomerate Reliance Industries Ltd on Saturday said its mega Rs 53,125 crore rights issue will open for subscription of shareholders on May 20 and close on June 3. Billionaire <keyword id="3820" type="PERSON" weightage="20" keywordseo="Mukesh-Ambani">Mukesh Ambani</keyword>'s firm had on April 30 announced fund raising of Rs 53,125 crore by way of a 1:15 rights issue -- India's biggest and the first such issue by the firm in nearly three decades. Reliance had earlier fixed May 14 as the record date for determining shareholders' eligible to apply for the issue. In a regulatory filing, the company said the rights issue committee of the board of directors at its meet on May 15 approved issue opening on May 20 and closing date of June 3. "Abridged letter of offer, application form of rights issue, and rights entitlement letter, to be sent to the eligible equity shareholders of the company," it said. One share will be offered for every 15 shares held at Rs 1,257, a 14 per cent discount to the closing price for April 30. Reliance share price has since risen to Rs 1,458.90 (Friday's closing price) but rights issue price remains the same. The proposed rights issuance will be the first by Reliance in three decades. Typically, cash-strapped companies use rights issues to raise money when they really need it. In these rights offerings, companies grant shareholders the right, but not the obligation, to buy new shares at a discount to the current trading price. But for Reliance, it is not about raising funds as it has significant liquidity with USD 23.4 billion of cash and equivalent. It is being seen as an attempt to reward the shareholders, cut debt at the group and underscore promoters' faith in the Reliance growth story. Promoter Ambani family has under-written the entire rights issue, pledging to buy shares that are unsubscribed. The last time Reliance tapped the public for funds was in 1991 when it had issued convertible debentures. The debentures were subsequently converted into equity shares at Rs 55 apiece. Ambani had in August last year unveiled plans to cut debt to zero by 2021. As part of this plan, RIL has been seeking strategic partnerships across its businesses while targeting to deleverage the balance sheet. At the end of March quarter, RIL had an outstanding debt of Rs 3,36,294 crore. It also had cash in hand of Rs 1,75,259 crore, bringing the net debt position to Rs 1,61,035 crore. As part of its balance sheet deleveraging plans, Reliance has sold minority stake in its digital unit Jio Platforms to likes of Facebook. It is also talking to Saudi Aramco for selling a fifth of its oil-to-chemicals business for an asking of USD 15 billion and has sold half of its fuel retail venture to BP Plc for Rs 7,000 crore and telecommunication tower business to Brookfield for Rs 25,200 crore. Together, proceeds from these transactions will result in reduction in RIL's net debt. SEE ALSO: <a href="https://www.businessinsider.in/careers/news/indian-women-dont-like-being-gig-workers/articleshow/75757460.cms">Indian women don’t like being gig workers ⁠— the potentially $450 billion industry has to woo them with fair pay to start with</a> <a href="https://www.businessinsider.in/entertainment/news/carry-minati-youtube-vs-tiktok-video-removed-for-violating-terms-of-service/articleshow/75749665.cms">Carry Minati's 'YouTube vs TikTok' video removed for violating terms of service — fans claim injustice</a> <a href="https://www.businessinsider.in/policy/economy/ashok-gulati-interview-on-essential-commodities-act-and-apmc-changes/articleshow/75760364.cms">"I have been asking for this for 20 years," says Ashok Gulati, agriculture scientist ⁠— cheering the changes to Essential Commodities Act and APMC</a>

Reliance Industries' ₹53,125 crore right issue will kick off on May 20 — you'll have till June 3 to subscribe

New Delhi, Apr 28 () Billionaire Mukesh Ambani's Reliance Industries Ltd (RIL) will on Thursday consider a rights issue - the first such issue in nearly three decades - as it steps up efforts to pare debt. The Board of the country's largest company will meet on April 30 to consider and approve audited financial results of the firm for the quarter and year ended March 31 as also to recommend dividend, RIL said in a regulatory filing. It would also "consider a proposal to issue equity shares to existing shareholders on Rights basis, as may be permitted under applicable law, subject to such regulatory/statutory approvals, as may be required," the company said without giving details. The move comes within days of RIL agreeing to sell 9.99 per cent stake in its digital platform to Facebook Inc for USD 5.7 billion or Rs 43,574 crore. Ambani had in August last year unveiled plans to cut debt to zero by 2021. As part of this plan, RIL has been seeking strategic partnerships across its businesses while targeting to deleverage the balance sheet. At the end of December quarter, RIL had an outstanding debt of Rs 3,06,851 crore. It also had cash in hand of Rs 1,53,719 crore, bringing the net debt position to Rs 1,53,132 crore. Analysts expect dilution of at least 5 per cent through the rights issue. In other words, each shareholder will be entitled to apply for five new shares for every 100 shares held. This will help RIL raise about Rs 40,000 crore, assuming some discount to the current trading price. Typically, cash-strapped companies use rights issues to raise money when they really need it. In these rights offerings, companies grant shareholders the right, but not the obligation, to buy new shares at a discount to the current trading price. The last time RIL tapped the public for funds was in 1991 when it had issued convertible debentures. The debentures were subsequently converted into equity shares at Rs 55 apiece. As part of its balancesheet deleveraging plans, RIL is talking to Saudi Aramco for selling a fifth of its oil-to-chemicals business for an asking of USD 15 billion and has sold half of its fuel retail venture to BP Plc for Rs 7,000 crore and telecommunication tower business to Brookfield for Rs 25,200 crore. But the crash in oil prices has created uncertainty over the timeline for the completion of the Aramco deal. On August 12, 2019, RIL announced that it has signed a non-binding letter of intent to sell a 20 per cent stake in its oil-to-chemical (O2C) business to Saudi Aramco. The O2C business, which has an enterprise valuation of USD 75 billion, includes RIL's refining and petrochemical divisions, and RIL's 51 per cent stake in its fuel marketing business. The company had sold a 49 per cent stake in its fuel marketing business in India to BP Plc for USD 1 billion. In July 2019, RIL announced the sale of its telecommunications tower business - which was already transferred to the investment infrastructure trust, InvIT, to Brookfield Asset Management Inc for Rs 25,200 crore. Together, proceeds from these transactions will result in a reduction in RIL's net debt. ANZ ANZ ANUANU

Reliance to consider rights issue, dividend on Thursday

New Delhi, Jun 1 () Reliance Industries' mega Rs 53,124 crore rights issue was on Monday oversubscribed 1.1 times, two days ahead of the issue closing. According to issue subscription data on stock exchanges, total bids received for RIL's rights shares stood at 46.04 crore, overshooting the 42.26 crore shares on offer by 8.9 per cent. BSE has received applications for 44.85 crore rights shares, while NSE got applications for 0.57 crore. The non-ASBA bid quantity stood at 0.62 crore rights shares (received at Registrar through R-WAP). The oversubscription figure indicates that shareholders applied for many more shares than their entitlements. The issue still has two more days to go and it is a well-observed phenomenon that in such issues with assured allotment, institutional investors invest only in the last few days. This means the final over-subscription number will rise to an even higher level. Billionaire Mukesh Ambani and promoter group had pledged to subscribe to the full extent of their rights entitlements and any unsubscribed portion of the issue. RIL has a very large number of shareholders -- over 25.4 lakh retail shareholders, over 1,700 institutional investors -- domestic as well as foreign. The significantly strong subscription numbers show the high level of confidence every category of shareholders has in the company's future and the promoters' commitment to creating value for them even in the times of COVID, sources said. The oversubscription numbers of RIL's rights issue are better than other comparable issues of the recent past. Bharti Airtel and Vodafone Idea's rights issues were oversubscribed by 5-8 pe cent. Each one of them was less than half the size of RIL's rights issue. Earlier, RIL created a whole new trading instrument in the form of REs which had premium valuation, liquidity and interest engaging quality investors. The REs never traded at below intrinsic during the renunciation period, which is a milestone in Indian capital markets. RIL-REs had created a value of about Rs 9,500 crore for the company's shareholders, when the online trading ended on May 29. RIL's first rights issue in three decades is set to close on June 03. In the rights issue, the company is offering one share for every 15 shares held at Rs 1,257. RIL on BSE closed at Rs 1520.45 on Monday. The company, as per the issue offer document, will use three-fourth of the proceeds of its mega rights issue for repayment of some of its borrowings. The company expects net proceeds of Rs 53,036.13 crore from the rights issue after accounting for legal and other expenses. Out of these, Rs 39,755.08 crore would go towards "repayment/ prepayment of all or a portion of certain borrowings availed by company," it said. The remaining Rs 13,281.05 crore would be used for general corporate purposes. Shareholders will have to pay only 25 per cent for subscribing to the company's mega Rs 53,125-crore rights issue, and the balance will have to be paid in two installments in May and November next year, the company said. Of the Rs 1,257 per share price, only 25 per cent is to be paid at the time of subscription. A similar amount will be due for payment in May 2021 and the balance 50 per cent has to be paid in November 2021, the company said. "On Application, investors will have to pay Rs 314.25 per rights equity share, which constitutes 25 per cent of the issue price and the balance Rs 942.75 per rights equity share, which constitutes 75 per cent of the issue price, will have to be paid, on one or more subsequent call(s)," it said. In May 2021, they will have to pay Rs 314.25, and balance Rs 628.50 is to be paid in November 2021. The last time RIL tapped the public for funds was in 1991 when it had issued convertible debentures. The debentures were subsequently converted into equity shares at Rs 55 apiece. Ambani had in August last year unveiled plans to cut debt to zero by 2021. As part of this plan, RIL has been seeking strategic partnerships across its businesses, while targeting to deleverage the balance sheet. At the end of March quarter, RIL had an outstanding debt of Rs 3,36,294 crore. It also had cash in hand of Rs 1,75,259 crore, bringing the net debt position to Rs 1,61,035 crore. As part of its balance sheet deleveraging plans, Reliance has sold a minority stake in its digital unit, Jio Platforms to the likes of Facebook and private equity firms. It is also talking to Saudi Aramco for selling a fifth of its oil-to-chemicals business for an asking of USD 15 billion and has sold half of its fuel retail venture to BP Plc for Rs 7,000 crore and telecommunication tower business to Brookfield for Rs 25,200 crore. Together, proceeds from these transactions will result in a reduction in RIL's net debt. ANZ BAL

Reliance mega rights issue oversubscribed 1.1 times

New Delhi, May 10 () Oil-to-telecom conglomerate Reliance Industries Ltd (RIL) has fixed May 14 as the record date for determining shareholders eligible to apply for India's biggest rights issue of Rs 53,125 crore. Billionaire Mukesh Ambani's firm had on April 30 announced fund raising of Rs 53,125 crore by way of a 1:15 rights issue, the first such issue by RIL in nearly three decades. One share will be offered for every 15 shares held at Rs 1,257, a 14 per cent discount to the closing price for April 30. RIL's share price has since risen to Rs 1,561.80 (Friday's closing price), but rights issue price remains the same. "We inform you that the Rights Issue Committee constituted by the Board of Directors of the company has, at its meeting fixed Thursday, May 14, 2020 as the 'Record Date' for the purpose of determining the equity shareholders entitled to receive the rights entitlement in the rights issue," the firm said in a regulatory filing. The rights issue opening and closing dates will be informed separately, it added. Typically, cash-strapped companies use rights issues to raise money when they really need it. In rights offerings, companies grant shareholders the right, but not the obligation, to buy new shares at a discount to the current trading price. The last time RIL tapped the public for funds was in 1991 when it had issued convertible debentures. The debentures were subsequently converted into equity shares at Rs 55 apiece. ANZ RVK

Reliance fixes May 14 as record date for rights issue

New Delhi, May 19 () Reliance Industries will use three-fourth of proceeds of its mega rights issue for repayment of some of its borrowings, according to offer document. The company expects net proceeds of Rs 53,036.13 crore from the rights issue that opens on May 20 and closes on June 3. Out of these, Rs 39,755.08 crore would go towards "repayment/ prepayment of all or a portion of certain borrowings availed by company," it said. The remaining Rs 13,281.05 crore would be used for general corporate purposes. Shareholders will have to pay only 25 per cent for subscribing to the company's mega Rs 53,125-crore rights issue, and the balance will have to be paid in two installments in May and November next year, the company said. One share will be offered for every 15 shares held at Rs 1,257. Of the Rs 1,257 per share price, only 25 per cent is to be paid at the time of subscription. A similar amount will be due for payment in May 2021 and the balance 50 per cent has to be paid in November 2021, the company said. "On Application, investors will have to pay Rs 314.25 per rights equity share, which constitutes 25 per cent of the issue price and the balance Rs 942.75 per rights equity share which constitutes 75 per cent of the issue price, will have to be paid, on one or more subsequent call(s)," it said. In May 2021, they will have to pay Rs 314.25, and balance Rs 628.50 is to be paid in November 2021. The last date for shareholders wishing to do an on market renunciation is May 29. Out of the net proceeds of Rs 53,036.13 crore, three-fourth will be used to repay/repay either fully or partly the Rs 16,350 crore of commercial papers and Rs 36,213 crore of non-convertible debentures, the offer document said. "Our promoter and promoter group, by way of their letters dated May 15, 2020, have confirmed to subscribe to the full extent of their rights entitlements" and any unsubscribed portion of the issue, the offer document said. Billionaire Mukesh Ambani's firm had on April 30 announced fund raising of Rs 53,125 crore by way of a 1:15 rights issue - India's biggest and first such issue by the firm in nearly three decades. One share will be offered for every 15 shares held at Rs 1,257. Reliance Industries' shares closed at Rs 1,408 on the BSE. The last time RIL tapped the public for funds was in 1991 when it had issued convertible debentures. The debentures were subsequently converted into equity shares at Rs 55 apiece. Ambani had in August last year unveiled plans to cut debt to zero by 2021. As part of this plan, RIL has been seeking strategic partnerships across its businesses, while targeting to deleverage the balance sheet. At the end of March quarter, RIL had an outstanding debt of Rs 3,36,294 crore. It also had cash in hand of Rs 1,75,259 crore, bringing the net debt position to Rs 1,61,035 crore. As part of its balance sheet deleveraging plans, Reliance has sold a minority stake in its digital unit, Jio Platforms to the likes of Facebook. It is also talking to Saudi Aramco for selling a fifth of its oil-to-chemicals business for an asking of USD 15 billion and has sold half of its fuel retail venture to BP Plc for Rs 7,000 crore and telecommunication tower business to Brookfield for Rs 25,200 crore. Together, proceeds from these transactions will result in a reduction in RIL's net debt. ANZ BAL BAL

Reliance to use 3/4th of the rights issue to repay debt

New Delhi, May 4 () Moody's Investors Service on Monday said Reliance Industries' Rs 53,100 crore rights issue is credit positive as earnings will decline because of economic shutdowns.Last week, Reliance announced it will raise Rs 53,100 crore through a rights equity offering.Also, the company announced an investment of Rs 5,656 crore by Silver Late in Jio Platforms, the digital services business of RIL."This is in line with the company's target to reduce its net debt to zero by March 31, 2021. The proceeds from the rights issue will reduce RIL's net debt by about USD 7.8 billion and is credit positive," Moody's said in a note.Along with the previously announced asset sales to Facebook, Inc and BP Plc, RIL expects to generate net proceeds of Rs 1.1 lakh crore, which will reduce its net debt by the same amount."The total net debt reduction from completion of these transactions will lower RIL's reported net debt, which was Rs 1.6 lakh crore (USD 21.4 billion) as on March 31, 2020, by about 68 per cent and will be equivalent to 1.1x its reported EBITDA of Rs 1 lakh crore for the fiscal year ended March 31, 2020," it said.In addition, RIL also announced that it has started the process to carve out its oil-to-chemical (O2C) business as a separate subsidiary in order to facilitate the previously announced 20 per cent stake sale in that business to Saudi Arabian Oil Company (Saudi Aramco).Despite the coronavirus outbreak and lower oil prices, RIL confirmed that the due diligence process for the transaction is ongoing."This increases the likelihood of the transaction going ahead as announced in August 2019," the rating agency said, adding the transaction with Saudi Aramco values the O2C business at USD 75 billion and can potentially result in USD 12-15 billion of cash proceeds for RIL, depending on the amount of debt at the O2C business after the reorganization.Reliance last week approved the biggest-ever rights issue of Rs 53,100 crore at Rs 1,257 per share.The company had reported a 10.5 per cent increase in its reported EBITDA for the fiscal year ended March 31, 2020, as compared to a year ago.While the economic shutdowns due to coronavirus outbreak resulted in a decline in earnings from RIL's O2C and retail businesses for the quarter ended March 2020, its earnings from its digital services continued to grow."We expect the earnings from its O2C and retail business to see a steeper decline in the quarter ending June 2020 as India's economy is scheduled to be under shutdown for at least 45 days in this quarter. An earnings recovery for these segments will depend on the timing of resumption of economic activity, which remains uncertain at this stage," it said.Assuming the economic activity to resume by middle to end of May 2020, the rating agency expected RIL's consolidated EBITDA to decline 10-12 per cent in FY2021 as compared to FY2020. However, the EBITDA is expected to return to FY2020 levels in FY2022 as improved demand in combination with low oil prices will result in higher earnings for the O2C segment, while the earnings growth for retail will resume."RIL's recent foray into online retail through its partnership with Whatsapp and Facebook could result in a further boost in its retail earnings, which is currently not factored in our projections," Moody's said. ANZ BAL

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