RIL's promoters to pick up stake at Rs 1,402/share

New Delhi, Feb 26 (UNI) The Reliance Industries Ltd today said the issue price of shares through the preferential offer of 12 crore warrants to its promoters has been fixed at Rs 1,402.

The company's board, which met on Saturday, has accorded approval to raise further equity by way of the preferential issue warrants.

While an amount equal to 10 per cent of the price will be paid on allotment of the warrants, the remaining 90 per cent will be paid at the time of subscription of the equity shares within a period of 18 months.

Post the issue, the company's paid-up capital will increase to Rs 1,513 crore from the present Rs 1,393 crore.

''The board's approval to enhance the equity capital of the company by preferential issue of warrants to promoters demonstrates our commitment to value creation. The substantial enhancement of shareholders funds will take RIL to a high growth platform by strengthening its capital structure,'' Mr Mukesh Ambani, Chairman, RIL had said on Saturday.

The price of Rs 1,402 was against the price of Rs 1,253 per share being the average of the weekly high and low of the closing prices of the company's equity shares quoted on the National Stock Exchange of India Ltd during the six months preceding February 27.

The consent of the shareholders is being sought through a Postal Ballot.

The last date for receipt of the Postal Ballot from the shareholders is March 29. The company is expected to announce the results of the resolution being passed through Postal Ballot on March 30.

UNI