RIL becomes net debt-free company (2nd Lead)

Investments by global tech investors and a ‘Rights Issue’ has made Reliance Industry a net debt-free company.

Accordingly, RIL has raised over Rs 1,68,818 crore in just 58 days.

The company’s net-debt was Rs 1,61,035 crore, as on March 31, 2020.

Consequently, it has now emerged as a net debt-free company.

In a statement, RIL Chairman Mukesh Ambani said: “I have fulfilled my 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.”

As per the statement, Jio Platforms has now announced investment of Rs 1,15,693.95 crore by leading global investors.

Besides, it raised Rs 53,124.20 crore via a ‘Rights Issue’.

The company said that combined capital raised has no precedence globally in such a short time.

“Both of these are also unprecedented in Indian corporate history and have set new benchmarks,” the company said in a statement.

“This is even more remarkable that this was achieved amidst a global lockdown caused by the COVID-19 pandemic.”

Along with the stake sale to BP in the petro-retail JV, the total fund raise is in excess of Rs 1.75 lakh crore, the company said.

In terms of investment, Jio Platforms has raised Rs 1,15,693.95 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.

Additionally, RIL’s ‘Rights Issue’, which was subscribed 1.59 times. The company said that it 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.