RIL net debt-free, "Fulfilled promise before schedule": Mukesh Ambani

Mangalore Today News Network

New Delhi, Jun 25, 2020: Reliance Industries is now "in its golden decade", said billionaire Mukesh Ambani as his group became net debt-free, much ahead of its original goal of achieving the status by the end of March 2021. "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. Over the past few weeks, oil-to-telecom conglomerate’s Reliance Industries’ rights issue of more than Rs 53,000 crore and investments of Rs 1.16 lakh crore in its digital services arm, Jio Platforms,from global companies including internet giant Facebook helped the group become net debt-free much before schedule.

 

With these investments, Reliance Industries said it has become net debt-free. The group’s net-debt had stood at Rs 1,61,035 crore as of March 31, 2020.

Reliance Industries said that the combined capital raised so far - including the rights issue and sale of stake in Jio - has no precedence globally in such a short time.

The group said that both are also unprecedented in the country’s corporate history, and that it is "even more remarkable that this was achieved amidst a global lockdown caused by the COVID-19 pandemic".

Earlier this month, Reliance Industries’ rights issue was subscribed 1.59 times, which the company said 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".

Reliance Industries shares jumped 1.68 per cent to scale a new record high of Rs 1,684 on Friday. The shares have broken a slew of records in the past few days, rising on the back of investment in Jio as well as the success of the rights issue, say analysts.

"Exceeding the expectations of our shareholders and all other stakeholders, again and yet again, is in the very DNA of Reliance," he said.

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.

Out of these 11 deals, Facebook committed the biggest capital infusion of Rs 43,573.62 crore for a 9.99 per cent stake in Jio Platforms, which houses Reliance Industries’ telecoms arm Reliance Jio Infocomm.

The internet major was followed by US-based private equity firms Vista and KKR, and Saudi Arabia’s Public Investment Fund, each of which took a 2.32 per cent stake in Jio Platforms for Rs 11,367 crore.

"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, in fulfilment of the vision of our Founder, Dhirubhai Ambani, to consistently increase our contribution to India’s prosperity and inclusive development," Mukesh Ambani said.


courtesy: NDTV