Reliance Industries becomes debt-free after 11 financial investors pick up shares in Jio Platforms, rights issue subscribed 1.59 times

With the Reliance Industries-owned Jio Platforms securing record investments from 11 of the world’s top financial investors within a span of nine weeks, the energy to telecom major announced on Friday that it has become net debt-free well ahead of its March 2021 target. RIL raised more than Rs 168,818 crore in just 58 days through Rs 115,693.95 crore collected from investors in Jio and another Rs 53,124.20 crore from a rights issue. Along with the stake sale to BP in the petro-retail JV, the total fundraising is in excess of ₹ 1.75 lakh crore, the company said in a statement. “Our net-debt was Rs 161,035 crore, as on March 31, 2020. With these investments, RIL has become net debt-free.” RIL has amassed Rs 115,693.95 crore in exchange for 24.7 percent stake in Jio through the largest uninterrupted fundraising by a company anywhere in the world. The deals, led by a strategic investment of  Rs 43,574 crore on 22 April by Facebook for 9.99 percent, followed one after the other in a span of just nine weeks and during a global lockdown at that. The 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, RIL said. “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 31st March 2021," said Mukesh Ambani, chairman and managing director of RIL. “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.” Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media and Investments Ltd.