Following a seemingly unstoppable streak of overseas investment, Reliance Industries has declared that it is debt-free.
A statement from the company’s chairman and MD Mukesh Ambani read: “I have fulfilled my promise to the shareholders by making Reliance net debt-free before our original schedule of 31 March 2021.”
In less than two months, Reliance Industries has sold 24.71% of its digital unit Jio Platforms to ten foreign investors, generating $15.2 billion. The most recent of these was announced yesterday (18th June), with Saudi Arabia’s Public Investment Fund acquiring a 2.32% stake for INR113.7 billion ($1.5 billion).
Reliance Industries noted that this was the fund’s largest ever investment in an Indian firm, while PIF governor Yasir Al-Rumayyan said that the acquisition would “enable us to generate significant long-term commercial returns for the benefit of Saudi Arabia’s economy and our country’s citizens.”
Ambani added a rights issue worth INR53.1 billion ($697.1 million) compounded the investments, meaning that Reliance had in fact generated INR1.7 trillion within the two month timeframe. Its net debt stood at INR1.6 trillion on 31st March 2020.
“As our fundraising milestone from financial investors is achieved, we sincerely thank the marquee group of financial partners and warmly welcome them into Jio Platforms”, he concluded.