Clarifying on its rights issue, Reliance Industries Limited (RIL) has said that shareholders whose fractional entitlements are being ignored will be given preferential consideration.
In a filing with the stock exchanges, RIL said that if the shareholding of any eligible equity shareholder is less than 15 equity shares or is not in the multiple of 15 equity shares, the fractional entitlement of such eligible equity shareholder shall be ignored for the computation of the rights entitlement.
However, the eligible equity shareholders whose fractional entitlements are being ignored, will be given preferential consideration for the allotment of 1 additional rights equity share each if they apply for additional rights equity shares over and above their rights entitlement.
However, this will be subject to availability of additional rights equity shares in this rights issue, the RIL said.
Since the ratio of rights issue is 1:15, some shareholders may be holding shares which are not in multiple of 15.
Others may be having shares which are less than 15.
This fractional entitlement provision is meant for the benefit of such shareholders, clarifying what will be the arrangement for the subscription and allotment.
Shareholders can apply for 1 rights issue share for every 15 shares held.
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