Reliance Industries Becomes Net Debt Free Much Before 2021

Reliance Industries has become net debt free much before 31 March 2020, which was the date given by Mukesh Ambani, managing director and chairman, Reliance Industries to shareholders last year. Reliance has raised over Rs 168,818 crore in just 58 days through investments by global tech investors Rs 115,693.95 crore and rights issue Rs 53,124.20 crore.

All the money was raised amidst the COVID-19 lockdown. The company’s net-debt was Rs 161,035 crore, as on 31 March 2020. With these investments, RIL has become net debt-free. Jio Platforms has raised Rs 115,693.95 crore from leading global investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG, L Catterton and PIF since 22 April 2020. PIF’s investment marks the end of Jio Platforms’ current phase of induction of financial partners.

The company says that the RIL Rights Issue, which was subscribed 1.59 times, was not only the largest ever in India, but also the largest in the world by a non-financial entity in the last ten years. On 12 August 2019, at the 42nd AGM of Reliance Industries Limited, Mukesh Ambani had assured the shareholders about his roadmap for Reliance becoming a net-debt free company before 31st March 2021.

“We have a very clear roadmap to becoming a zero net debt company within the next 18 months that is by 31st March 2021. We have received strong interest from strategic and financial investors in our consumer businesses, Jio and Reliance Retail. We will induct leading global partners in these businesses in the next few quarters, and move towards listing of both these companies within the next five years. With these initiatives, I have no doubt that your company will have one of the strongest balance sheets in the world,” Ambani had said.

On the current developments, Mukesh Ambani said, “Today I am both delighted and humbled to announce that we have fulfilled our promise to the shareholders by making Reliance net debt-free much before our original schedule of 31st March 2021. “

“Over the past few weeks, we have been overwhelmed by the phenomenal interest of the global financial investor community in partnering with Jio. As our fund-raising milestone from financial investors is achieved, we sincerely thank the marquee group of financial partners and warmly welcome them into Jio Platforms. 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,” he added.