Reliance Industries Ltd will consider a rights issue at its board meeting on April 30, in what would be its first such issue in nearly three decades, the oil to retail conglomerate said in an exchange filing late on Monday.
Reliance did not provide any details of the rights issue under consideration.
Shares in the company rose as much as 1.8% in early trade following the announcement, later falling in line with the broader market. At 0455 GMT, the shares were trading down 2% while the Nifty share index was 0.1% lower.
Analysts said the potential for a rights issue is a positive development and reflects the confidence of management and their commitment to reducing Reliance’s net debt to zero by March 2021.
