Firstpost
  • Home
  • Video Shows
    Vantage Firstpost America Firstpost Africa First Sports
  • World
    US News
  • Explainers
  • News
    India Opinion Cricket Tech Entertainment Sports Health Photostories
  • Asia Cup 2025
Apple Incorporated Modi ji Justin Trudeau Trending

Sections

  • Home
  • Live TV
  • Videos
  • Shows
  • World
  • India
  • Explainers
  • Opinion
  • Sports
  • Cricket
  • Health
  • Tech/Auto
  • Entertainment
  • Web Stories
  • Business
  • Impact Shorts

Shows

  • Vantage
  • Firstpost America
  • Firstpost Africa
  • First Sports
  • Fast and Factual
  • Between The Lines
  • Flashback
  • Live TV

Events

  • Raisina Dialogue
  • Independence Day
  • Champions Trophy
  • Delhi Elections 2025
  • Budget 2025
  • US Elections 2024
  • Firstpost Defence Summit
Trending:
  • Charlie Kirk shot dead
  • Nepal protests
  • Russia-Poland tension
  • Israeli strikes in Qatar
  • Larry Ellison
  • Apple event
  • Sunjay Kapur inheritance row
fp-logo
Reliance Industries' slew of equity deals to drive improvement in company rating: Fitch Ratings
Whatsapp Facebook Twitter
Whatsapp Facebook Twitter
Apple Incorporated Modi ji Justin Trudeau Trending

Sections

  • Home
  • Live TV
  • Videos
  • Shows
  • World
  • India
  • Explainers
  • Opinion
  • Sports
  • Cricket
  • Health
  • Tech/Auto
  • Entertainment
  • Web Stories
  • Business
  • Impact Shorts

Shows

  • Vantage
  • Firstpost America
  • Firstpost Africa
  • First Sports
  • Fast and Factual
  • Between The Lines
  • Flashback
  • Live TV

Events

  • Raisina Dialogue
  • Independence Day
  • Champions Trophy
  • Delhi Elections 2025
  • Budget 2025
  • US Elections 2024
  • Firstpost Defence Summit
  • Home
  • Business
  • Reliance Industries' slew of equity deals to drive improvement in company rating: Fitch Ratings

Reliance Industries' slew of equity deals to drive improvement in company rating: Fitch Ratings

Press Trust of India • May 13, 2020, 14:43:23 IST
Whatsapp Facebook Twitter

Reliance Industries’ proposed $7 billion rights issue, a string of equity deals of $8 billion in Jio Platforms, and $1 billion from a joint venture with BP plc will allow its leverage to improve, Fitch Ratings said on Wednesday

Advertisement
Subscribe Join Us
Add as a preferred source on Google
Prefer
Firstpost
On
Google
Reliance Industries' slew of equity deals to drive improvement in company rating: Fitch Ratings

New Delhi: Reliance Industries’ proposed $7 billion rights issue, a string of equity deals of $8 billion in Jio Platforms, and $1 billion from a joint venture with BP plc will allow its leverage to improve, Fitch Ratings said on Wednesday. “The rights issue and equity deals when completed are likely to support an upgrade of RIL’s long-term local-currency issuer default rating (IDR) of ‘BBB’, which is on a positive outlook,” it said in a statement. RIL’s long-term foreign-currency IDR (BBB-/Stable) is constrained by India’s country ceiling of ‘BBB-’, it said. [caption id=“attachment_4572901” align=“alignleft” width=“380”]Representational image. Reuters. Representational image. Reuters.[/caption] Fitch said the management of oil-to-telecom conglomerate is committed to achieving a net cash position by end-March 2021, which it could achieve sooner if it receives the required regulatory and other customary approval for the rights issue and equity deals in 2020. Click here to follow LIVE news and updates on stock markets The company announced three equity deals in as many weeks, including $5.7 billion investment from Facebook Inc, $750 million from Silver Lake Partners and $1.5 billion from Vista Equity Partners, in Jio Platforms – the holding company for its wireless and technology business. It also got $1 billion from selling 49 percent stake in the auto fuel retailing business to BP plc. Also, the firm announced its first rights issue in three decades. Its billionaire promoter Mukesh Ambani and his family are committed to subscribe to a full portion of their share, and also to the unsubscribed portion if any. “We forecast RIL to generate positive free cash flow in the financial year ending March 2021 (FY21), the first time since FY13, and its net leverage to fall to 1.8x from 2.2x in FY20,” Fitch said. “Lower net leverage would result from higher earnings before interest, taxes, depreciation and amortization (EBITDA) generation from consumer businesses and lower capex intensity, despite the likelihood of coronavirus-related weakness in its refining and petrochemical segment.” While its consumer-facing businesses will see growth, the firm’s traditional oil refining and petrochemical business would face volume margin headwinds due to weakening demand, the rating agency said. RIL’s consumer businesses are expected to be less affected by the coronavirus lockdown and social-distancing measures and is expected to contribute about 50 percent of consolidated EBITDA in FY21 as compared to 35 percent in 2019-20 fiscal. Also, the telecom business will benefit from higher data and voice consumptions during the lockdown and mitigate any impact of slower subscriber additions. Fitch expects Jio’s average revenue per user to increase to Rs 147 in FY21, from Rs 131 in Q4FY20. It also saw Jio adding 30 million subscribers during FY21 against 80 million additions in FY20. Jio’s fibre-to-the-home business should also start contributing to revenue and EBITDA in FY21, buoyed by strong demand for home broadband. RIL’s retail segment revenue, excluding the digital-services business, is expected to rise by 10 percent in FY21 against 15 percent in FY20. Retail revenue would be affected by lower footfalls in its physical retail stores and lower spending on discretionary electronics and lifestyle products. However, the impact would be mitigated by higher grocery sales and also from its partnership with Facebook, which will allow users to buy goods and services using WhatsApp and Facebook Messenger, it said. (Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd which publishes Firstpost)

Tags
facebook Reliance Industries Mukesh Ambani NewsTracker BP Plc Fitch ratings Reliance Jio jio Jio Platforms
End of Article
Latest News
Find us on YouTube
Subscribe
End of Article

Impact Shorts

Chennai Ranks #1 in Challan Checks: ACKO Insights for Smarter Car and Two Wheeler Insurance Decisions

Chennai Ranks #1 in Challan Checks: ACKO Insights for Smarter Car and Two Wheeler Insurance Decisions

Chennai leads India in challan checks, with drivers checking their e-challans over 5 times a month on average. Helmet non-compliance is the most broken rule, accounting for 34.8% of all traffic offences in Chennai. Regular digital challan checks help drivers avoid hefty fines, promote safe driving, and improve insurance premiums.

More Impact Shorts

Top Stories

Charlie Kirk, shot dead in Utah, once said gun deaths are 'worth it' to save Second Amendment

Charlie Kirk, shot dead in Utah, once said gun deaths are 'worth it' to save Second Amendment

From governance to tourism, how Gen-Z protests have damaged Nepal

From governance to tourism, how Gen-Z protests have damaged Nepal

Did Russia deliberately send drones into Poland’s airspace?

Did Russia deliberately send drones into Poland’s airspace?

Netanyahu ‘killed any hope’ for Israeli hostages: Qatar PM after Doha strike

Netanyahu ‘killed any hope’ for Israeli hostages: Qatar PM after Doha strike

Charlie Kirk, shot dead in Utah, once said gun deaths are 'worth it' to save Second Amendment

Charlie Kirk, shot dead in Utah, once said gun deaths are 'worth it' to save Second Amendment

From governance to tourism, how Gen-Z protests have damaged Nepal

From governance to tourism, how Gen-Z protests have damaged Nepal

Did Russia deliberately send drones into Poland’s airspace?

Did Russia deliberately send drones into Poland’s airspace?

Netanyahu ‘killed any hope’ for Israeli hostages: Qatar PM after Doha strike

Netanyahu ‘killed any hope’ for Israeli hostages: Qatar PM after Doha strike

Top Shows

Vantage Firstpost America Firstpost Africa First Sports
Latest News About Firstpost
Most Searched Categories
  • Web Stories
  • World
  • India
  • Explainers
  • Opinion
  • Sports
  • Cricket
  • Tech/Auto
  • Entertainment
  • IPL 2025
NETWORK18 SITES
  • News18
  • Money Control
  • CNBC TV18
  • Forbes India
  • Advertise with us
  • Sitemap
Firstpost Logo

is on YouTube

Subscribe Now

Copyright @ 2024. Firstpost - All Rights Reserved

About Us Contact Us Privacy Policy Cookie Policy Terms Of Use
Home Video Shorts Live TV