Reliance Industries will use three-fourth of proceeds of its mega rights issue for repayment of some of its borrowings, according to offer document.
The company expects net proceeds of Rs 53,036.13 crore from the rights issue that opens on May 20 and closes on June 3.
Out of these, Rs 39,755.08 crore would go towards “repayment/ prepayment of all or a portion of certain borrowings availed by company,” it said.
The remaining Rs 13,281.05 crore would be used for general corporate purposes.
Shareholders will have to pay only 25 per cent for subscribing to the company’s mega Rs 53,125-crore rights issue, and the balance will have to be paid in two installments in May and November next year, the company said.
