Read how Ambani’s Reliance Industries Ltd became ‘net debt-free’, catch full details

Reliance Industries Limited, June 19 (Friday) officially confirmed that it had become net debt-free just eight months ahead of March 2021 deadline it had set for itself.

It should be noted that the target of making the oil-to-telecom behemoth debt-free was outlined by Chairman and Managing Director Mukesh Ambani at RIL’s 42nd Annual General Meeting on August 12, 2019.

“We have a very clear roadmap to becoming a zero net-debt company within the next 18 months, that is by 31st March 2021,” Ambani said. “We have received strong interest from strategic and financial investors in our consumer businesses, Jio and Reliance Retail.

We will induct leading global partners in these businesses in the next few quarters and move towards listing of both these companies within the next five years. With these initiatives, I have no doubt that your company will have one of the strongest balance sheets in the world.”

According to Reliance Industries, the company’s net debt was Rs 161,035 crore as on March 31, 2020.

The overall investment resulting from 11 deals struck by Reliance Industries for its digital unit, Jio Platforms, over the last nine weeks amounts to Rs 115,693.95 crore. The recent RIL rights issue fetched Rs 53,124.20 crore. Together with Jio investments, it played an important role in helping RIL become net debt-free.

This is how it happened:  

S NoInvestor In Jio Platforms Limited Date of InvestmentInvestment Amount (₹Crore) % Stake
1 Facebook, Inc.22nd April 202043,573.629.99%
2 Silver Lake Partners4th May 20205,655.751.15%
3 Vista Equity Partners8th May 202011,367.002.32%
4 General Atlantic17th May 20206,598.381.34%
5 KKR22nd May 202011,367.002.32%
6 Mubadala5th June 20209,093.601.85%
7Silver Lake Partners (additional investment)5th June 20204,546.800.93%
8Abu Dhabi Investment Authority7th June 20205,683.501.16%
9TPG13th June 20204,546.800.93%
10L Catterton13th June 20201,894.500.39%
11PIF18th June 202011,367.002.32%
Total₹ 115,693.9524.70%
RIL RIGHTS ISSUE20th May to 3rd June 2020₹ 53,124.20
FUNDS RAISED IN 58 DAYS₹168,818.15