Reliance Industries Ltd. (RIL) has raised over Rs. 168,818 crores in just 58 days through investments by global tech investors – Rs. 115,693.95 crores and rights issue – Rs. 53,124.20 crores.
The combined capital raised has no precedence globally in such a short time. Both of these are also unprecedented in Indian corporate history and have set new benchmarks. This is even more remarkable that this was achieved amidst a global lockdown caused by the COVID-19 pandemic.
Along with the stake sale to BP in the petro-retail JV, the total fund raise is in excess of Rs. 1.75 lakh crores.
With these investments, Reliance Industries whose net-debt was Rs. 161,035 crores, as on March 31, 2020 become a net debt-free company.
Jio Platforms has raised Rs. 115,693.95 crores from leading global investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG, L Catterton and PIF since April 22, 2020. PIF’s investment marks the end of Jio Platforms’ current phase of induction of financial partners.
The RIL Rights Issue, which was subscribed 1.59 times, was not only the largest ever in India, but also the largest in the world by a non-financial entity in the last ten years.
It was on August 12, 2019, at the 42nd AGM of Reliance Industries, the Chairman Mukesh Ambani had assured the shareholders about his roadmap for Reliance becoming a net-debt free company before March 31, 2021 and said: “We have a very clear roadmap to becoming a zero net debt company within the next 18 months that is by March 31, 2021……
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.”
Expressing his gratification at this achievement, Mukesh Ambani stated: “Today I am both delighted and humbled to announce that we have fulfilled our promise to the shareholders by making Reliance net debt-free much before our original schedule of March 31, 2021. Exceeding the expectations of our shareholders and all other stakeholders, again and yet again, is in the very DNA of Reliance. Therefore, on the proud occasion of becoming a net debt-free company, I wish to assure them that Reliance in its Golden Decade will set even more ambitious growth goals, and achieve them, in fulfilment of the vision of our Founder, Dhirubhai Ambani, to consistently increase our contribution to India’s prosperity and inclusive development.”
Mukesh Ambani further said: “Over the past few weeks, we have been overwhelmed by the phenomenal interest of the global financial investor community in partnering with Jio. As our fund-raising milestone from financial investors is achieved, we sincerely thank the marquee group of financial partners and warmly welcome them into Jio Platforms. I also express my heartfelt gratitude to all the retail and institutional investors, both domestic and foreign, for their overwhelming participation in our record-setting Rights Issue.”