Reliance goes public for the first time by announcing its IPO and raises Rs 2.8 crore (USD 3.28 million), thus ushering in the Equity Cult in India.
• Initial share price is Rs 10
• Issue oversubscribed seven times with 58,000 investors by the year end
• Receives approval for BSE listing of Reliance as Reliance Textile Industries Ltd.
Image Courtesy: Reliance Industries Limited.
In 1977, in order to scale up its operations, funds were needed. Unwilling to face red tape from banks, Reliance reached out to the public. Its first public issue was oversubscribed seven times, to the complete astonishment of trade analysts. Small investors now became the backbone of the company.
Image Courtesy: Reliance Industries Limited.