Reliance fixes Record Date for Paying Final Call on Partly Paid Shares

It may be recollected that last year when Reliance had come out with its Rs.53,124 crore rights issue, the allotment money was payable in three tranches over a period of 18 months. As a result, during this period, the Reliance stock had dual trading in the form of fully paid up regular shares and partly-paid up shares. Now RIL has made the call for the last tranche.

Reliance Industries has now fixed 10-November as the record date to determine the holders of partly-paid shares for paying final call amount. Based on the names that appear on the record on 10-November, the holders of partly paid up shares will be required to pay Rs.628.50 per share as the balance amount between 15-November and 29-November.

Once that process is completed, all shares of Reliance Industries outstanding in the market will only be fully paid up shares and the partly paid shares will stand extinguished. The partly paid shares are currently quoting at a discount to the equivalent fully paid up stock. On 09-November, the trading in partly paid up shares will be suspended.

Reliance Industry - Rights Issue

Reliance had come out with the rights issue in May 2020 and allotted a total of 42.26 crore partly paid shares to investors as the first tranche of the rights issue. Only 25% of the amount was payable in the first tranche. The second tranche was made payable as of 11-May, when a call was made for another 25% at a price of Rs.314.25 per share.

The November 2021 call will be the final call for shareholders and will entail payment of the balance 50% of the right issue payment or Rs.628.50 per share. In short while Rs.628.50 was paid in two tranches in Jun-20 and in May-21, the last tranche of Rs.628.50 per share will be payable between 15-November and 29-November.

The last tranche of the rights will be worth a little over Rs.26,000 crore of which the Ambani promoter family itself will pay close to Rs.13,000 crore. As part of the rights issue, the Ambani family had said that they would not forfeit any of their rights and will also be willing to take up any residual rights not taken up by other shareholders. The Ambani family through individuals, PAC and trusts hold 50.61% stake in Reliance Industries.