Reliance Industries becomes net debt-free ahead of schedule

Highlights
  • Total debt of RIL was Rs 1,61,035 crore and total funds raised are Rs 1,68,818 crore
  • Fund raised through FDI in Jio Platforms is Rs 1,15,693.95 crore
  • Fund raised through Rights Issue of RIL is Rs 53,124.20 crore

Reliance Industries headed by Mukesh Ambani had a net debt of Rs 1,61,035 crore as of 31st March 2020 and the company had set a target of becoming net debt-free by March 2021 by various stake sales in its asset holdings. As of today, the company has raised Rs 1,68,818 crore, of which Rs 1,15,693.95 crore was raised through foreign investments in Jio platforms whereas the balance Rs 53,124.20 crore was raised through a rights issue by RIL. In essence, RIL has fulfilled its target of becoming net debt-free much ahead of schedule.

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 April 22, 2020. PIF’s investment marks the end of Jio Platforms’ current phase of induction of financial partners.

Sr. No.Investor in Jio PlatformsInvestment
(in crore)
Percentage
Stake
1Facebook Inc.43,573.629.99
2Silver Lake Partners10,202.552.08
3Vista Equity Partners11,367.002.32
4General Atlantic6,598.381.34
5KKR11,367.002.32
6Mubadala9,093.601.85
7Abu Dhabi Investment5,683.501.16
8TPG4,546.800.93
9L Catterton1,894.500.39
10PIF Saudi Arabia11,367.002.32
Total1,15,693.9524.70

“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. Exceeding the expectations of our shareholders and all other stakeholders, again and yet again, is in the very DNA of Reliance. 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 fulfillment of the vision of our Founder, Dhirubhai Ambani, to consistently increase our contribution to India’s prosperity and inclusive development.”

Expressing his gratification at this achievement, Mukesh Ambani stated

The RIL Rights Issue, which was subscribed 1.59 times, helped RIL raise a total of Rs 53,124.20 crore. This 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. Along with the stake sale to BP in the petro-retail JV, the total fundraising is in excess of Rs 1.75 lakh crore. RIL also has plans for the public listing of Jio Platforms and Reliance Retail in the next 5 years.

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