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Reliance Industries now 'debt-free', Mukesh Ambani says 'fulfilled my promise before schedule'

Reliance Industries Ltd (RIL) net-debt was ₹ 161,035 crore, as on 31st March 2020. The company has raised ₹115,693.95 crore from 10 tech investors and ₹ 53,124.20 crore from RIL's rights issue.

India TV Business Desk Edited by: India TV Business Desk
Mumbai Updated on: June 19, 2020 10:08 IST
Reliance Industries now 'debt-free', Mukesh Ambani says 'fulfilled my promise before schedule'
Image Source : MUKESH AMBANI

Reliance Industries now 'debt-free', Mukesh Ambani says 'fulfilled my promise before schedule'

Reliance Industries Ltd (RIL) Chairman Mukesh Ambani on Friday announced that the company has now become net debt-free. Reliance has raised over Rs 1,68,818 crore in just 58 days through investments by global tech investors - Rs 115,693.95 crore and Rights Issue - Rs 53,124.20 crore for its digital services arm, Jio Platforms. With these investments, now RIL has become a "net debt-free" company.

“I have fulfilled my promise to the shareholders by making Reliance net debt-free much before our original schedule of 31st March 2021,” Mukesh Ambani said in a statement released early on Friday.

Reliance Industries sold a total 24.70 per cent stake in Jio Platforms in 11 deals for Rs 1,15,693.95 crore within nine weeks starting April 22. 

Along with the stake sale to BP in the petro-retail JV, the total fund raise is in excess of Rs 1.75 lakh crore. Our net-debt was Rs 161,035 crore, as on March 31 2020. With these investments, RIL has become "net debt-free", it added.

"The combined capital raised has no precedence globally in such a short time. Both of these are also unprecedented in Indian corporate history and have set new benchmarks. This is even more remarkable that this was achieved amidst a global lockdown caused by the COVID-19 pandemic. Along with the stake sale to BP in the petro-retail JV, the total fund raise is in excess of ₹ 1.75 lakh crore," RIL said in a statement.

Reliance Industries Ltd (RIL) net-debt was ₹ 161,035 crore, as on 31st March 2020. The company has raised ₹115,693.95 crore from 10 tech investors and ₹ 53,124.20 crore from RIL's rights issue. Reliance launched India's biggest right issue, which was subscribed 1.59 times.

Out of these 11 deals, Jio Platforms - which houses the country's youngest but largest telecom firm Reliance Jio, raised Rs 1,15,693.95 crore from leading global investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG, L Catterton and PIF since April 22, 2020.

Saudi Arabian sovereign wealth fund PIF buying 2.32 per cent stake in the unit for Rs 11,367 crore on June 18 "marks the end of Jio Platforms'' current phase of induction of financial partners," the statement said.

In 2019 AGM, Mukesh Ambani had promised shareholders that Reliance will become net debt-free by March 31, 2021 and had also spoken of getting Reliance Jio and Reliance Retail listed in the next five years.

Reliance's Jio vision to enable a Digital India for 1.3 billion people and businesses across the country, including small merchants, micro-businesses and farmers so that all of them can enjoy the fruits of inclusive growth.

 

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