InvestorQ : How do you see the Reliance stock after the latest results and the rights issue?
Niti Shenoi made post

How do you see the Reliance stock after the latest results and the rights issue?

Answer
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Archita Jajjoo answered.
4 months ago


On 30 April, Reliance Industries announced quarterly and full year results. Net profits and total revenues suffered due to weak oil prices. RIL took a provision of Rs.4245 crore in the quarter towards oil inventory losses. But the real takeaway for Reliance was the announcement of rights issue in the ratio of 1:15, which was largely along anticipated lines. This will result in a dilution of nearly 6.67% in the capital of the company and will have an proportionate impact on the EPS too. The promoters will be subscribing to their part of the rights and will also take up any rights portion not taken up. The rights issue will help RIL raise over Rs.53,000 crore and help the company in its net-zero debt target by March 2021. The company current has net debt to the tune of Rs.155,000 crore.