NEW DELHI : After record fundraising, Reliance Industries Ltd now has a strong balance sheet with high liquidity that will support growth plans for its three hyper-growth engines, Jio, Retail and Oil-to-Chemicals, according to the firm's chairman and managing director Mukesh Ambani.
In the company's latest annual report released on Wednesday, he said the company sold minority stakes in Jio Platforms — the unit that houses its telecom and digital business — and retail arm for almost ₹2 lakh crore and raised another ₹53,124 crore through rights issue.
"We now have a strong balance sheet with high liquidity that will support growth plans for our three hyper-growth engines -- Jio, Retail and O2C," he said.
During 2020-21, Reliance completed India's largest ever rights issue of ₹53,124 crore (oversubscribed by 1.59 times), which was also the largest in the world by a non-financial institution in the last 10 years.
"During the year, Jio Platforms and Reliance Retail raised ₹1,52,056 crore and ₹47,265 crore, respectively, from strategic and financial investors, including Facebook and Google," he said. "BP invested ₹7,629 crore for a 49% stake in our fuel retailing business."
These funds helped Reliance reach net zero-debt target ahead of schedule.
"Strong operating cash flow and largest ever capital raise further strengthened our balance sheet, enabling us to deleverage and meet our net-debt zero commitment ahead of stated timeline," he said, adding that during the year, Reliance made pre-payment of $7.8 billion of long-term foreign currency debt, with requisite approvals from RBI.
This is the highest ever pre-payment of debt undertaken by any corporate borrower in India.
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Mukesh Ambani says Reliance now has strong balance sheet to support growth - Mint
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