Reliance Industries closes $7b rights issue, India's largest ever
MUMBAI, June 6: India's oil-to-telecoms giant Reliance Industries on Wednesday closed a $7 billion rights issue, India's largest ever, luring buyers in with a rare deferred payment offer.
Proceeds from the issue, also ranked as one of the world's biggest by a non-financial company based on Dealogic data, will aid Reliance's plan to slash net debt to zero this year.
The issue was subscribed about 1.6 times, in "a vote of confidence, by both domestic investors, foreign investors and small retail shareholders, in the intrinsic strength of the Indian economy", billionaire owner Mukesh Ambani said a statement late on Wednesday.
Reliance launched the issue last month, offering existing shareholders one new share for 15 held at a discounted price of 1,257 rupees ($17) apiece.
Investors could pay only a quarter of the price upfront, and the rest in two instalments until November 2021.
Also, in a first, Reliance said the partly paid up shares could be traded on stock exchanges, giving investors a chance to buy more of the discounted issue than the entitlement and making it an attractive bet for arbitrage players. -Reuters