How a Change in a Rule by SEBI Helped Reliance Raise Rs 53,000 crore
A number of significant changes in rules and regulations by the Indian government during the COVID-19 lockdown facilitated a rights issue of shares by Reliance Industries Limited.
rights issue
Did the Government Help Reliance Industries Raise Rs 53,000 crore?
The recently-concluded rights issue of shares by Reliance Industries Limited would not have been possible were it not for the relaxation of a crucial rule by the Securities and Exchange Board of India a few days before the Mukesh Ambani-headed company declared that it would conduct the country’s biggest-ever rights issue to raise over Rs 53,000 crore. This is the sixth article in a series.
Is Reliance’s Rights Issue Over-Valued?
India’s biggest ever rights issues of shares by the country’s single largest private corporate entity, Reliance Industries Limited, is under way at a time when the economy is in terrible shape. Is the fund raising effort being conducted in a manner that could end up with the company’s shareholders paying more than what they should for discounted shares?