Reliance India Rights Issue, Rs 53000 crore, Price, Meanings, Equity Share

Reliance India Rights Issue news Reliance Rights Issue Price Meanings of Rights Issue Equity Share Price Reliance India Rights Issue Reliance India going to bring India"s one of the largest rights issue. Rights issue will help share holder to purchase 1 share instead of 15 share. First if all you should know what is the meaning if Rights Issue or Right offering. Right Issue is related to equity share holder. It means if you are existing share holder of Reliance, JIO, Airtel or Facebook or Saudi Aramco than you have rights to buy their share before it goes to market. So Reliance company allows you first to purchase their share.

Reliance Rights issue share price Rs 1257 somethings. Size of rights issue is Rs 53125 crore.

Highlights
1. Generally Rights issue offers on discounted price.
2. Main benefit of Right Issue to to Raise Fund. Its gives money to company. Flow of cash in company.
3. Promoters can also participate in purchasing Rights Issue such as Mukesh Ambani.
4. Good sign of Rights Issue is depend only to promoters who purchase rights issue.
5. So company introduced rights issue, when they wants to be in trap of debt.
6. Rights issue is used to take over any company.


Rights Issue Example: Suppose Reliance open rights issue from May to June for Rs 500 than for existing Reliance Share holder it will be available for Rs 350 to Rs 400. Due to Coronavirus lockdown 90 companies Indian employee is sitting in home and to stop symptoms one should need to avoid social distancing. India is 3rd largest economy and largest growing GDP in the world. But todays time every rich and poor country GDP, Economic condition is low due to stoppage of cash flow. These type of Rights issue helps increase cash flow.

Why Rights issue brings by Reliance: If company believes they have debt issue more means Debt to Equity ratio is increases and facing cash trap. Than company introduced rights issue. We have seen Airtel issues rights issues of more than Rs 25000 crore in year 2019. It is because of 4G business and its competitors Reliance JIO backed by Asias Richest Person Mukesh Ambani. 

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