The Rs 53,124 crore rights issue of Reliance Industries Ltd (RIL) received an overwhelming response from investors and now the partly paid-up rights shares are set to debut on bourses on June 15. The partly paid-up shares will be separately listed under RELIANCEPP symbol.

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Here are key things to know about the listing:

1. RIL's partly paid rights issue shares will be listed on exchanges on June 15, 2020. The shares will be listed separately with a unique ISIN number IN9002A01024 and the scrip ID or Symbol will be RELIANCEPP on BSE and NSE.

2. The partly paid-up shares are expected to trade at a premium to their intrinsic valuation Monday onwards after the Right Entitlements received a strong response in online trading.

The intrinsic value of a 25 percent paid-up share will be one-fourth of the fully paid-up share price. Thus, if the fully paid-up share is trading at Rs 1600, the intrinsic value of a partly paid-up share will be Rs 400. Any higher price it commands will be the premium a buyer is willing to pay to own the partly paid-up share.

3. Under the rights issue, Reliance issued new shares at Rs 1,257 each to existing shareholders in 1:15 ratio. The investors had to pay only 25 percent or Rs 314.25 per share at the time of application and will need to pay another 25 percent or Rs 314.25 in May 2021 and remaining 50 percent or Rs 628.5 in November 2021, when the shares will turn into fully paid-up.

4. RIL's Rs 53,124 crore rights issue was India's largest ever rights issue. It was also the world's largest rights issue by a non-financial institution in the last ten years. It was announced on April 30, 2020 and the listing of the Rights shares will take place on June 15, 2020 – a period of just 45 days, defying the constraints of the COVID-induced lockdown.

5. In spite of its magnitude, RIL’s rights issue closed with 59 percent oversubscription – a commitment exceeding Rs 84,000 crore from investors.

6. The issue generated interest globally with foreign portfolio investors (FPIs) using the opportunity to invest in the company, notwithstanding the COVID-led economic slowdown. The number of FPIs holding RIL shares increased to 1,395 on June 11, 2020, as against 1,318 on March 31, 2020. The FPIs’ stake in RIL now stands at 24.15 percent, up from 23.48 percent at end March 2020.

7. RIL completed the allotment of partly paid-up shares to the demat accounts of its shareholders on June 11, 2020 under the Rights Issue, as per the basis of allotment finalised in consultation with the lead managers, the Registrar to the Rights issue and BSE, the designated stock exchange for the rights issue.

8. On the expanded post issue equity of 676.2 crore equity shares, the promoter group’s stake now stands increased to 49.14 percent, from 48.87 percent at end March 2020. This underlines the promoters’ confidence and commitment to the company’s future growth.

9. Earlier, RIL’s rights issue saw a whole new trading instrument in the form of Right Entitlements (REs) which earned premium valuation, liquidity and interest engaging quality investors. The REs were credited to the demat accounts of eligible shareholders and were listed on stock exchanges between May 20 and May 29, 2020. The REs NEVER traded below intrinsic value during the renunciation period.

10. A rights issue is not only simpler to do as it reaches out to existing shareholders and offers them a fixed, discounted price, it also enables existing shareholders to lock into more equity at current low market prices.

Disclosure: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.

First Published:Jun 12, 2020 4:21 PM IST