How to Apply Reliance Rights Issue Step-by-Step : How to Apply Reliance Rights Issue Step-by-Step guide for India’s biggest equity offering. In this article Moneypip discuses on the topic of India Biggest Company Reliance Rights Issue so read this article carefully.
RIL (Reliance) jumbo rights issue opened on May 20 for subscription for existing shareholders. This is not only RIL’s first rights issue in nearly 3 decades, but also by far the biggest equity offering.
The corporate proposed to lift Rs 53,125 crore by means of greatest ever rights situation, which is able to shut on June 3, 2020, whereas the ratio is one rights situation share for each 15 fairness shares held by present shareholders as on document date (Could 14).
India’s greatest ever proper situation has been priced at Rs 1,257 per share which had ex-rights date on Could 13, 2020. The rights entitlement ratio is 1 fairness share for each 15 fairness shares held by eligible shareholders as on the document date which was Could 14.
As per CNBC-TV18 data, RIL-RE is trading at a premium of more than 25 percent at 10:00 IST.
Final 12 months in Could, Bharti Airtel raised about Rs 25,000-crore by way of rights concern. Shareholders of Bharti Airtel had been eligible to use for 19 rights fairness shares for each 67 fairness shares held.
Evaluating it with different mega fairness choices within the major market area, Coal India’s IPO, which got here in 2010, tops the chart of the most important IPOs, with a difficulty measurement of Rs 15,475 crore. It was adopted by Reliance Energy IPO which got here in 2008 with a difficulty measurement of Rs 11,700 crore.
Basic Insurance coverage Company of India’s IPO is within the third spot. It got here in 2017 with a difficulty measurement of Rs 11,372 crore. ONGC is on the fourth spot with a difficulty measurement of Rs 10,694 crore. ONGC IPO had are available 1996.
What is a Rights issue?
Rights challenge is when a listed firm proposes to challenge contemporary securities to its current shareholders as on a report date. The rights are usually supplied in a selected ratio to the variety of securities held previous to the difficulty.
This route is greatest suited to corporations that want to increase capital with out diluting the stake of its current shareholders except they don’t intend to subscribe to their entitlements.
How to apply for the Reliance right issue? (Step to learn how to apply Ril Rights Issue)
Important Date For Reliance Right Issues Apply :
- Reliance Rights Issue Open 20 May 2020
- Reliance Rights issue apply last date 03 june 2020
Follow this steps how to apply Reliance Rights Issue step wise so read carefully :-
1. If you have Reliance Shares as of 14th May, you are entitled to apply for the Rights, too. This entitlement is currently shown in your Demat account
2. There is no max limit. You can apply for any number of shares in this issue.
3. Up to entitled shares are guaranteed allotment for you (i.e. your rights entitlement based on 1 for every 15 shares currently held).
4. Anything more than entitled shares will be decided by the company, if you apply for more shares.
4. If you don’t want to apply for these rights shares, then you could sell your rights entitlement in the stock market also just like any other stock.
5. If you want to sell in the stock market, option will be available from 20th May i.e. Wednesday. The current price is Rs. 163
6. Similarly if you want more of these rights entitlement, you can buy from the stock market
7. If you buy another 100 of these rights entitlement from stock market then you will have total guaranteed allotment of 100 in rights
8. Rights shares will be allotted at Rs. 1,257/- per share.
9. Out of this, 25% i.e. Rs. 314.25 per share, has to be paid now.
10. The balance will be paid in two future installments. Expected 25% in May 2021 and 50% in Dec 2021
Now how to apply for these rights.
11. There are 3 methods.
12. Two are online and one is an offline method
We will discuss each of these methods below.
First Method – Online Method 1 – From your internet banking account.
(a) Log in to your own online bank account
(b) It will have the option to invest in IPO/Rights – if your bank has enabled it
(c) In that, it will show these Reliance Rights apply button
(d) You will have to fill basic details of your folio, number of rights shares you want to apply, etc.
(e) In this method, no amount will be debited from the bank. However for every share applied, you have to block 314.25 per share in the bank. This process is online ASBA
(f) Your bank may want you to enable ASBA online, if not done already(g) On allotment, amt will be debited in ur bank depending on the number of shares you are allotted. Till then this money stays in your bank account but is blocked.
Method 2 – Online Through RTA website.
(a) Go to this website https://rights.kfintech.com
(b) Here click on the tab – Apply for Rights issue thru RWAP.
(c) Only for Resident investors. NRIs cannot use this
(d) It will then ask for basic details like PAN, DP ID, Folio no, etc. You will have to fill this online.
(d) And then u have to make payment. Either through Net Banking or thru UPI.
No other payment method is allowed. Remember in UPI there is a limit of 2 lacs
(e) In this method, the money will be debited from your bank immediately i.e. 314.25 for every share applied.
Balance Refund amount if any, will be refunded back to your bank later by the company in case you are allotted lesser than shares applied for.
(The above article is for reference only and not a recommendation)
Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.