Reliance Industry is now debt-free after raising capital from global investors

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Reliance Industries owner Mukesh Ambani on Friday said that his oil-to-telecom merged Reliance Industries is currently debt-free after raising capital of Rs 1.69 lakh crore from global investors and through a right issue. The capital of Rs 1.15 crore is raised by selling the firm’s digital arm, Jio platform, and another Rs 53,124 crore through the right issue in the past 58 days. Last year they the total fundraised is over 1.75 lakh crore. On March 2020 Reliance had a net debt of Rs 1, 61,035 crores with these investments Reliance industries limited are now debt-free. Ambani said that he had fulfilled his promise to the shareholders by making reliance net free much before than what they had scheduled earlier. Jio platforms, country’s largest and youngest telecom firm Reliance Jio had raised Rs 115693,95 crore from leading global investors including the silver lake, Facebook, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG, L Catterton and PIF for April 22, 2020. They also said that they had stopped the current phase of induction of financial partners by buying 2.325 stakes in the units for Rs 11,367 crore from Saudi Arabian sovereign wealth fund PIF on June 18. 

Besides this Reliance had recently launched India’s biggest right issue, which was subscribed to 1.59 times. Even though the estimated amount through the right issue was Rs 53,124 crore but the company has got only 25% of the money and the remaining amount is paid only in the next fiscal year. In the annual general body meeting of the company, Ambani had declared the road map as to how they became a debt-free company. He said that the route map to become a zero debt company was very clear for them.

Apart from this the quick success of Jio in the telecom sector has increased the interest of investors globally. Within three years of its launch, Jio Infocomm has emerged as the biggest telecom player in the country with a customer base of 38.75 crores. The company is also planning in the public listing of reliance Retail and Jio in the next five years.

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