Mukesh to increase stake in Reliance Industries Ltd, company to issue 12 Crore Preferential Warrants

The promoters of Reliance Industries Ltd Mr.Mukesh Ambani to raise his equity stake by way of preferential issue of 12 crore warrants exercisable into equal number of equity shares of Rs.10 each of the Company to the Promoters as per SEBI guidelines for Preferential Issues, subject to shareholders approval.

An amount equivalent to 10% of the price would be paid on allotment of warrants and the remaining 90% would be paid at the time of subscription to equity shares on exercise of rights attached to the warrants within a period of 18 months. On exercise of such rights the paid up capital of the Company will increase from Rs 1393 crores to Rs 1513 crores.

The company also confirmed the decision taken on 9th November, 2006 to raise US $2 billion to finance the capital expenditure plan for oil and gas business through External Commercial Borrowings by way of debt.

Commenting on the above, Chairman, Mr. Mukesh Ambani said "The Board’s approval to enhance the equity capital of the Company by Preferential issue of warrants to promoters demonstrates our commitment to value creation at Reliance.

The substantial enhancement of shareholders funds will take RIL to a higher growth platform by strengthening its capital structure.

I am really excited about accelerating our investments in all our key businesses - oil & gas, refining, petrochemicals and retailing by both organic and inorganic growth initiatives."

Source : Equity Bulls

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