RIL in talks to sell more stake in Jio Plat­forms

Hindustan Times (Jalandhar) - - BUSINESS - Anirudh Laskar

MUM­BAI:The talks with New York­based pri­vate eq­uity firm Gen­eral At­lantic to sell a 2% stake in Jio Plat­forms for ₹10,000 crore are among a se­ries of stake sale ini­tia­tives by Re­liance Industries Ltd (RIL) to build con­fi­dence among po­ten­tial in­vestors as it heads for a mega rights is­sue, said two peo­ple on con­di­tion of anonymity.

On April 30, RIL had an­nounced plans to raise ₹53,125 crore through a 1:15 rights is­sue (one new share for ev­ery 15 shares held) at an of­fer price of ₹1,257 a share. The record date for the is­sue is May 14.

“This is a very large rights is­sue, con­sid­er­ing the cur­rent mar­ket sen­ti­ment. The over­all mar­ket sen­ti­ment is sub­dued. There is a lot of eco­nomic un­cer­bai, tainty. That is one of the main rea­sons why the pro­posed rights is­sue is be­ing kept as a partly paid-up is­sue, which means any sub­scriber can buy the rights is­sue shares by only mak­ing a part pay­ment now and the rest within a pe­riod of six months or a year,” said one of the two peo­ple cited above.

“Within that time, RIL pro­mot­ers too can com­fort­ably bring in enough money to sub­scribe to the rights is­sue. The global in­vest­ments in Jio Plat­forms will build con­fi­dence among in­vestors, which will help RIL suc­cess­fully com­plete the rights is­sue.”

Share­hold­ers will­ing to sub­scribe to the rights is­sue will have to pay 25% on ap­pli­ca­tion and the rest in one or more tranches. With 50% share­hold­ing, RIL’s pro­moter group led by Mukesh Am­bani will need ₹26,600 crore to sub­scribe to its por­tion of the rights is­sue.

“At least 25% or ₹6,650 crore will have to be brought in as up­front amount to sub­scribe to the rights is­sue,” said the per­son cited ear­lier.


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