RIL Share Price: Reliance Industries Limited (RIL) has issued a final call for payment of outstanding installments on partly paid shares issued in 2021. The company said that if the dues are not paid by September 20, these partly paid shares may be forfeited. The company’s notice also states that shareholders whose partly paid shares will be forfeited will not be eligible for the recently announced bonus issue on those shares and shares of Jio Financial Services.
RIL said in the forfeiture notice issued on September 6, “The Board of Directors of the Company at its meeting held on September 5, 2024 decided that the partly paid shares of the shareholders who have not paid the amount of first or second (final call) or both the calls will be forfeited.”
What are partly paid shares of Reliance and what is the amount outstanding?
Reliance Industries had raised around Rs 53,125 crore by issuing a rights issue in May 2020 in a ratio of 1:15. It was India’s largest rights issue at that time. It allowed investors to pay for the allotted shares in three installments, totalling Rs 1,257 per share. The first 25 per cent of the amount (₹314.25) was to be paid at the time of rights issue, the second 25 per cent at the time of first call in May 2021, and the remaining 50 per cent (₹628.5) at the time of second call in November 2021.
The partly paid shares were delisted in November 2021 and the shares on which investors had made full payment were converted into fully paid shares.
How much money is owed to RIL shareholders?
Reliance Industries has issued notices to shareholders who have not paid the due installment yet on November 12, 2021, August 1, 2022 and now September 6, 2024. Shareholders on whose shares only the initial 25 per cent amount was paid will have to pay the remaining two installments, i.e. Rs 314.25 and Rs 628.5. Shareholders on whose shares the first installment was paid will have to pay the final installment of Rs 628.5.
However, shareholders will also have to pay interest at the rate of 8 per cent per annum on the outstanding amount along with the installment.
Advantages of payment
Partly paid shares will be converted into fully paid shares upon payment of dues, thereby providing 2 major benefits to shareholders:
– 1:1 bonus shares (after shareholders approval)
– Equity shares of Jio Financial Services
Therefore, the Company has advised that it is in the interest of shareholders to make the payment within the stipulated time.
How to pay?
Shareholders can make payment online through RIL’s R-WAP portal (https://rights.kfintech.com/callmoney), or can also pay through demand draft to KFin Technologies Limited.
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