Reliance Industries Limited has become a net debt-free company months before its target after raising over Rs 1,68,818 crore in just 58 days via a rights issue and by roping in global tech investors to buy minority stake in Jio Platforms Limited, the company announced on Friday.
RIL said along with the stake sale to BP in the petro-retail joint venture, the total funds raised stand at Rs 1.75 lakh crore. RIL's net-debt as on 31st March 2020 was Rs 161,035 crore. "With these investments, the company has now become net debt-free," the company stated.
"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," it claimed.
Notably, Jio Platforms has 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. PIF's investment marks the end of Jio Platforms' current phase of induction of financial partners, the company said.
Besides, RIL Rights Issue, which was subscribed 1.59 times, was the largest in the world by a non-financial entity in the last 10 years, the company said. "I have fulfilled my promise to the shareholders by making Reliance net debt-free much before our original schedule of 31st March 2021," RIL Chairman Mukesh Ambani said in a statement.
Ambani during the company's 42nd AGM in August 2019 had vowed assured the shareholders about his roadmap to make RIL a net-debt free company before 31st March 2021. Ambani said the company had been overwhelmed by the interest of the global financial investor community in partnering with Jio.
Reliance Industries Limited stock opened 1.39 per cent up on Friday at Rs 1,679 from its previous close of Rs 1,655.90.Also read: It's raining cheques for Ambani! Saudi Arabia-based PIF to invest Rs 11,367 crore in Jio Platforms
Copyright©2023 Living Media India Limited. For reprint rights: Syndications Today