RIL to raise ~25,000 cr via NCDs to fund expansion

Reliance Industries Ltd (RIL) plans to raise ~25,000 crore through privately-placed debentures as the energy-toretail conglomerate seeks to replace existing high-cost borrowings and build a war chest for its aggressive expansion strategy in the telecom space.

The Mukesh Ambani-led firm sought shareholders’ nod to issue redeemable non-convertible debentures on private placement.

In a stock exchange notice, RIL said the company’s annual general meeting will be held on July 21 to consider the fund raising.

A shareholder resolution sought nod “to offer or invite subscriptions for secured/ unsecured redeemable nonconvertible debentures, in one or more series/tranches, of an aggregate nominal value up to ~25,000 crore on private placement”.

It sought to authorise the board of directors to “determine and consider proper and most beneficial to the company including, without limitation, as to when the said debentures are to be issued, the face value of debentures to be issued, the consideration for the issue, mode of payment, coupon rate, redemption period, utilisation of the issue proceeds and all matters connected”.

The company had raised ~30,000 crore in 2015-16 through a rights issue in two parts and in January this year said it would raise another ~30,000 crore through a rights issue of optionally convertible preference shares to invest in Reliance Jio Infocomm, the telecom unit.

RIL, which operates the world’s biggest oil refinery complex in Jamnagar, has already invested $25 billion in setting up a nationwide, 4G mobile network.