RIL net debt to dip with rights issue, Jio stake sale: Morgan Stanley

Asset monetisation in Jio Platforms along with the $7 billion rights issue should reduce Reliance Industries Limited's (RIL) net debt by more than half, according to a report by Morgan Stanley.

It said that multiple catalysts are in play with faster than expected deleveraging, improving demand and margin outlook on refining and chemicals, top quartile earnings CAGR of 23 per cent over F20-23, and digitisation, supporting multiples.

Reliance Industries announced today an investment of $252 million by Intel Capital for a 0.39 per cent stake in Jio Platforms.

This investment values Jio Platforms at $68.8 billion,along similar lines as the recently announced stake sale.

Intel Capital is the investment arm of Intel corporation. Since 1991, Intel Capital has invested $12.9 billion in more than 1,582 companies worldwide. RIL highlighted that it plans to work with Intel on new technologies.

To date, RIL has sold 25.1 per cent of Jio Platforms, which equates to raising $15.7 billion at current exchange rates. "We believe asset monetization in Jio Platforms along with the $7 billion rights issue should reduce RIL's net debt by more than half," Morgan Stanley said in the report.

Reliance Industries Limited (RIL) and Jio Platforms Limited on Friday announced that Intel Capital will invest Rs 1,894.50 crore in Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 trillion.

Intel Capital's investment will translate into a 0.39 per cent equity stake in Jio Platforms on a fully diluted basis.

Intel Capital joins the list of marquee firms who have recently invested in Jio Platforms, taking the total investment amount to Rs 1.17 trillion.