Mukesh Ambani declares Reliance net debt-free

Mukesh Ambani
Reliance Industries Limited Chairman Mukesh Ambani Picture

New Delhi, June 19: Mukesh Ambani has declared his group Reliance group net debt-free with the combined capital raised so far – including the rights issue and sale of stake in Jio.

The chairman of oil-to-telecom conglomerate Reliance Industries said he has “fulfilled promise to shareholders much before schedule”.

Reliance company which has the full support of the current government in India, is now “in its golden decade” 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 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.

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”.

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”.

The total deals struck by Reliance so far from April22 to June 13

  1. Reliance Industries said Facebook will take a 9.99 per cent stake in Jio platforms for RS 43,573.62 crore.
  2. Silver Lake will invest Rs 5,655.75 crore in Jio Platforms for a 1.15 per cent stake.
  3. Vista will own 2.32 per cent of Reliance Industries’ digital services arm for Rs 11,367 crore.
  4. A 1.34 per cent stake will go to General Atlantic for Rs 6,598.38 crore.
  5. Reliance Industries said KKR will take a 2.32 per cent stake in Jio Platforms for Rs 11,367 crore.
  6. Mubadala will purchase a 1.85 per cent interest in Jio Platforms for Rs 9,093.60 crore.
  7. Reliance Industries said Silver Lake and its co-investors will buy an additional 0.93 per cent stake in Jio Platforms for Rs 4,546.80 crore. With this, the total investment by Silver Lake and its partners stands at 2.08 per cent.
  8. Abu Dhabi Investment Authority will invest Rs 5,683.50 crore for a 1.16 per cent stake in Jio Platforms.
  9. A 0.93 per cent stake will go to TPG for Rs 4,546.80 crore.
  10. Catterton will purchase a 0.39 per cent stake in Jio Platforms for Rs 1,894.50 crore.
  11. Saudi Arabia’s sovereign wealth fund will buy a 2.32 per cent stake in Jio Platforms for Rs 11,367 crore.

This 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.

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