Introduction
RIL Share Price Update: Reliance Industries Limited (RIL), one of India’s leading conglomerates, has recently made a pressing announcement regarding its partly paid shares. The company has called for the payment of outstanding installments on shares issued during a rights issue in 2021. Shareholders are required to settle these dues by September 20, 2024, to avoid forfeiture of their shares. Those whose shares are forfeited will also be ineligible for a newly announced bonus issue.
Background on Partly Paid Shares
RIL successfully raised approximately Rs 53,125 crore through a record-breaking rights issue in May 2020. This effort marked the largest rights issue in India to date, with the issuance structured in a 1:15 ratio. Investors were permitted to pay for their allotted shares in three installments, totaling Rs 1,257 per share. The payment schedule was as follows:
- First installment: 25% (₹314.25) at the time of rights issue.
- Second installment: 25% at the first call in May 2021.
- Final installment: 50% (₹628.5) at the second call in November 2021.
The Current Situation
As per a notice issued on September 6, 2024, the Board of Directors affirmed that shareholders who have not completed their payment obligations risk forfeiture of their partly paid shares. This decision is crucial, especially given that the forfeited shares would exclude holders from benefit packages related to both the bonus issue and shares of Jio Financial Services.
Outstanding Amounts
RIL has previously notified shareholders regarding outstanding payments on several occasions—specifically on November 12, 2021, August 1, 2022, and now September 6, 2024. The breakdown of outstanding payments is as follows:
| Shareholder Status | Amount Due |
|---|---|
| Initial payment only (25%) | Remaining 2 installments: ₹314.25 and ₹628.5 |
| First installment paid (50%) | Final installment: ₹628.5 |
Additionally, an interest charge of 8% per annum on outstanding amounts will be applicable.
Benefits of Settling Dues
Converting partly paid shares into fully paid shares comes with significant advantages for shareholders. These benefits include:
- Eligibility for a 1:1 bonus shares issuance (subject to shareholder approval).
- Access to equity shares of Jio Financial Services.
RIL has strongly encouraged its shareholders to complete their payments on time to enjoy these benefits.
Payment Methods
Shareholders may conveniently make their payments via RIL’s dedicated R-WAP portal or opt to submit a demand draft to KFin Technologies Limited. This flexibility facilitates an easier process for ensuring payments are made by the stipulated deadline.
Conclusion
In light of the recent developments regarding Reliance Industries’ partly paid shares, it’s critical for shareholders to act promptly. Ensuring payments are made by September 20, 2024, not only protects their investments but also opens the door to additional opportunities and advantages within the company. Staying informed and proactive is essential in navigating these financial landscapes.
