Reliance Right Issue: Last Date for Payment of Partly Paid-Up Shares Changed from September 20 to October 7th

As a shareholder of Reliance Industries Limited, you are likely aware of the recent notice concerning the forfeiture of partly paid-up equity shares.

Here are some essential details about the payment requirements, the deadline, and the potential benefits that shareholders will gain by settling the outstanding amounts.

Why is the payment important?

The payment of the outstanding call money is crucial to converting your partly paid-up equity shares into fully paid-up shares. By doing so, you not only secure your investment but also become eligible for two significant benefits:

Bonus Shares: Upon shareholder approval, you will be entitled to bonus shares in a 1:1 ratio, meaning you will receive one bonus share for every fully paid-up share you hold.
Equity Shares of Jio Financial Services Limited: With the demerger of Jio Financial Services Limited (JFSL) from Reliance Industries Ltd., you will also be entitled to receive equity shares of JFSL, further adding value to your investment.

How much do you need to pay?

Here’s a breakdown of the amount payable per share:

₹314.25 per share for the First Call, along with interest accrued at 8.00% per annum from June 1, 2021, until September 4, 2024.
₹628.50 per share for the Second & Final Call, plus interest accrued from November 30, 2021, to September 4, 2024.

The total amount, including the interest, must be paid no later than October 7, 2024.

Payment Instructions:

a) Cash payments shall not be accepted. Cheques, money orders and postal orders will also not be accepted.

b) No part payment will be accepted. If the amount paid is less than the amount shown in point 1 & 2 then the amount paid shall be adjusted, provided such adjustment results in atleast one fully paid equity share and the balance amount which cannot be adjusted to a whole equity share will be refunded.

c) Payments made using third party bank accounts will be rejected.

For example: If a shareholder holds 10 partly paid-up equity shares on which only the Second & Final Call is payable @ ₹628.50 per equity share, then such shareholder is required to pay ₹7,676/- (along with interest). However, if shareholder makes payment of only ₹4,000/-, then an amount of ₹3,838/- (₹628.50 x 5 equity shares + interest) will be applied towards making 5 partly paid-up equity shares as 5 fully paid-up equity shares. The balance ₹162/- will be refunded. The remaining 5 partly paid-up equity shares will be forfeited.

How to make the payment

Reliance Industries has made the payment process simple and convenient for shareholders. You can make your payment using any of the following methods:

R-WAP Portal: You can use the R-WAP (Rights Issue Web Application Platform) to pay online. The R-WAP portal supports payment through net banking, UPI, NEFT, or RTGS. Access the portal by visiting: R-WAP Payment Portal
Demand Draft: Alternatively, you can submit a demand draft along with the payment slip to KFin Technologies Limited. Ensure that the demand draft is sent via courier or registered post so that it reaches KFin Technologies by 5:00 P.M. IST on October 7, 2024.

Key benefits of making the payment

Completing the payment of the call money by October 7, 2024, offers several advantages:

Retention of Shares: By making your shares fully paid-up, you secure your ownership and avoid forfeiture.
Bonus Shares: Once the bonus share issue is approved, you will receive additional shares in the ratio of 1:1, increasing your stake in the company.
Jio Financial Services Shares: With the ongoing demerger of JFSL from Reliance Industries, you will receive equity shares in Jio Financial Services Limited, providing you with a new asset class.

What happens if you don’t pay?

On September 6, 2024, Reliance Industries Limited issued a notice regarding the forfeiture of partly paid-up equity shares. If the outstanding amounts on these shares are not settled by October 7, 2024, the partly paid-up equity shares held by you will be forfeited.

Forfeiture in this case means;

the permanent loss of you’re the shares entitled to you,
any payments made towards them,
and any associated shareholder rights (including dividends and voting rights.)

The Board of Directors approved the forfeiture during their meeting on September 5, 2024, and the notice specifies that any unpaid amounts for the First Call and Second & Final Call must be settled to avoid this outcome.