Reliance Industries to raise Rs 25,000 crore through NCDs in tranches

Oil to telecom conglomerate Reliance Industries (RIL) on Thursday said the company’s board has approved a proposal to raise Rs 25,000 crore through non convertible debentures (NCD)s in multiple tranches. The company did not disclose the purpose for the fund raising.

“It is hereby informed that the board of directors of the company, at its meeting held today, has approved, the proposal for raising of funds through issuance of Non-Convertible Debentures (NCDs) up to Rs. 25,000 crore in tranches from time to time, on a private placement basis,” RIL said in its statement to BSE.

While the company did not disclose the purpose for fund raising, the management earlier guided the company’s capex cycle will slow down going forward. For the quarter ended December 2019, RIL turned free cash flow (FCF) positive.

In August 2019, group chairman and managing director Mukesh Ambani told shareholders that the company will be a zero net debt company before March 2021.

Part of the debt-reduction plan, in August RIL said, it also plans to find global partners for its retail and telecom businesses and unlock value in real estate and financial investments. The company looks to sell 20 per cent stake in its oil to chemicals (O2C) division to Saudi Aramco for around $15 billion. The plan also includes monetising its telecom tower and fibre assets through the Infrastructure Investment Trust (InvIT) model.