Reliance is now “net debt-free”, announced Chairman Mr Mukesh Ambani.
Mukesh Ambani declares Reliance debt-free before the promised time. The company raised capital beyond its debt. Sold 24.7 % stakes of Jio platforms.
After raising a whopping amount of ₹ 1,68,818 crore from investors in Jio Platforms and the rights issue, Reliance Industries Chairman Mr. Mukesh Ambani announced on Friday that the company is now “net-debt free”.
“I have fulfilled my promise to the shareholders by making Reliance “net debt-free” much before our original schedule of 31st March 2021,” said Mr. Ambani in a statement. The company’s net debt stood at ₹1,61,035 crore as of March 31, 2020.
This speedy success was achieved in less than 2 months,58 days to be precise. The company’s digital subsidiary Jio platforms raised ₹115,693.95 crores by selling a total of 24.7 % stake to 10 tech investors and rest ₹ 53,124.20 crores from Reliance Industries Limited(RIL’s) rights issue. Among the major investors in RIL, is the global Tech giant, Facebook which owns a 9.9 % stake in Jio platforms after investing ₹ 43,573.62 crores. Other leading global investors include Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG, L Catterton, and PIF.
Along with the stake sale to BP(Oil company) in the petro-retail Joint Venture, the total fundraised is over ₹ 1.75 lakh crore.
“The company has made a remarkable achievement by raising a massive capital amidst lockdown due to pandemic. The combined capital raised has no precedence globally, Both of these are also unprecedented in Indian corporate history and have set new benchmarks” RIL said in a statement.
“Exceeding the expectations of our shareholders and all other stakeholders, again and yet again, is in the very DNA of Reliance,” Mr. Ambani said. He further added that the company is aspiring for higher goals in the coming years.