RIL becomes net debt-free company

RIL becomes net debt-free company

Along with the stake sale to BP in the petro-retail JV, the total fundraising is in excess of ₹ 1.75 lakh crore, the company said in a statement.

The share price of Reliance Industries Ltd (RIL) gained nearly 5 percent to hit a record high in the early trade on Friday as the company announced that it has become net debt-free after having raised Rs 1.68 lakh crore in under two months.

Reliance Industries Chairman Mukesh Ambani said that his company had become net debt-free and fulfilled its promise to shareholders ahead of the original schedule.

In a move bolstering Mr Ambani's ambitions, Reliance is closing in on a deal that would see it acquire stakes in some units of Indian retailer, Future Group, which already has a partnership with Amazon, people familiar with the matter said this week.

Mukesh Ambani, who controls Reliance Industries (the parent firm of Jio Platforms and a range of other businesses), said that Jio Platforms and Reliance Retail, the largest retail chain in the country, "have received strong interest from strategic and financial investors", but he will now "induct leading global partners in these businesses in the next few quarters".

Rights Issue comes into play when the company offers existing share holders more shares at lesser prices as a non-dilutive pro rata way to raise capital. Reliance Industries completed India's biggest ever rights issue of Rs 53,124 crore earlier this month.

As of 10.46 am, RIL's shares were trading at Rs 1,682.45 or 1.58% higher on the Sensex, and at Rs 1,684.00 (1.70%) on the Nifty 50.

The company's net debt, as of March 21, 2020 was Rs 161,035 crore.

Ambani had, at the company's annual general meeting on August 12, 2019, announced a roadmap for Reliance to become a net debt-free company before March 31, 2021.

"Therefore, on the proud occasion of becoming a net debt-free company, I wish to assure them that Reliance in its Golden Decade will set even more ambitious growth goals, and achieve them", he added.
PIF's investment marks the end of Jio Platforms' current phase of induction of financial partners.

"I also express my heartfelt gratitude to all the retail and institutional investors, both domestic and foreign, for their overwhelming participation in our record-setting Rights Issue".