RIL fundraise has no precedent: Ambani
THIS IS EVEN MORE REMARKABLE THAT THIS WAS ACHIEVED AMID A GLOBAL LOCKDOWN CAUSED BY COVID-19, THE RIL CHAIRMAN SAID
Reliance Industries Ltd (RIL) chairman Mukesh Ambani has termed his company’s massive fund-raising an unprecedented global event, made more remarkable given the backdrop of the coronavirus outbreak.
“We have recently raised over ₹1,68,818 crore through investments by global tech investors into Jio Platforms of ₹115,694 crore and the rights issue of ₹53,124 crore,” Ambani said in RIL’S annual report released on Tuesday.
“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 amid a global lockdown caused by the Covid-19 pandemic,” he said. Ambani, who had at RIL’S annual general meeting last August announced plans to sell a 20% stake in its refining and petrochemicals business for $15 billion to Saudi Aramco to become a net debt-free company, maintained that the transaction remains on track despite some headwinds. “The partnership gives our refineries access to a wide portfolio of value-accretive crude grades and enhanced feedstock security for a higher oil-tochemicals conversion,” Ambani said. The deal, which is yet to be closed, was part of RIL’S initial plans to deleverage; however, there has been speculation over the possibility of talks being called off due to the global glut in oil due to poor demand environment because of the pandemic.
Ambani added that the consolidated earnings before interest tax depreciation and amortisation (Ebitda) of RIL’S consumer businesses—reliance Retail and Jio—has grown 49.3% year-onyear. The company’s consolidated Ebitda crossed the ₹1 lakh crore mark, a first by an Indian company. Consumer businesses now account for 35% of RIL’S consolidated Ebitda. RIL’S retail business achieved a turnover of ₹1,62,936 crore and a store count of 11,784 during the year.
“Reliance Retail continues to grow in scale, driven by new store expansions across the geography, improving store throughput and favourable product mix. Operating leverage is resulting in the release of strong operating cash flows to continue making requisite investments to secure future readiness and delivering profitable growth,” said Ambani.