RIL hits record high on turning net debt free

Reliance Industries (RIL) rose 1.15% to Rs 1675.35 after the company announced that it has become net debt free.

RIL on Friday (19 June) said has raised over Rs 168,818 crore in just 58 days through investments by global tech investors in Jio Platforms (Rs 115,693.95 crore) and through rights issue of RIL (Rs 53,124.20 crore).

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. RIL's net-debt was Rs 161,035 crore, as on 31 March 2020. With these investments, RIL has become net debt free.

RIL chief Mukesh Ambani said, "I have fulfilled mypromise to the shareholders by making Reliance net debt-free much before our original schedule of 31 March 2021."

Jio Platforms has raised Rs 115,693.95 crore from leading global investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG, L Catterton and PIF since 22 April 2020. PIF's investment marks the end of Jio Platforms' current phase of induction of financial partners, RIL said.

Earlier in August 2019, August 2019, Mukesh Ambani had assured the shareholders about his roadmap for Reliance becoming a net-debt free company before 31 March 2021. The company has met this target much before the deadline.

The stock hit a record high of Rs 1,684 in early trade today. The counter has surged nearly 84% in last three months as compared to a 20.8% rise in the Sensex in the same period.

On a consolidated basis, RIL's net profit fell 38.74% to Rs 6,348 crore on 2.5% decline in revenue to Rs 151,209 crore in Q4 March 2020 over Q4 March 2019.

RIL is India's largest private sector company. Its activities span hydrocarbon exploration and production, petroleum refining and marketing, telecom and digital services.

Powered by Capital Market - Live News