After collecting record capital from major investors around the world, Reliance Industries Ltd Chairman and Managing Director Mukesh Ambani says the company is now well-positioned to move forward on its growth path. The company has plenty of liquidity in its books to support growth in its three businesses, from telecom, retail and oil to chemicals.
53,124 crore through rights distribution
In its latest annual report released Wednesday, the company said it had sold a minority stake in Geo Platforms and a retail unit worth Rs 2 lakh crore. In addition, through the issuance of rights, an additional Rs. Geo platforms run the company’s telecom and digital business. “We have a strong ledger with high liquidity, which will support the growth plans of our three fastest growth engines, Geo, Retail and Oil-to-Chemicals,” Ambani said.
Reliance plans to raise Rs 53,124 crore in 2020-21 Subscribed 1.59 times per issue. This is the biggest rights issue to look at. Throughout the year, Geo Platforms and Reliance Retail have raised Rs 1,52,056 crore and Rs 47,265 crore from various strategic and financial investors, including Facebook and Google, respectively.
Reliance Industries
BP (British Petroleum) accounts for 49% of our energy retail business at Rs 7,629 crore. These investments have made Reliance Industries a zero-credit company ahead of schedule, Ambani said. “Such strong financial flows and the largest capital increase have further strengthened our account books, enabling us to clear our dues before the deadline and meet our commitment to become a net zero-credit company,” Ambani said. During the year, Reliance paid off a long-term foreign currency debt of $ 7.8 billion, he said. The necessary approval has been obtained from the Reserve Bank. This is the largest prepayment of debt for any company in India.
