InvestorQ : Do you think that Reliance will be able to repay the net debt of Rs.161,000 crore by March 2021 as they are claiming?
prachi Patwardhan made post

Do you think that Reliance will be able to repay the net debt of Rs.161,000 crore by March 2021 as they are claiming?

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1 year ago
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That will largely depend on how fast and what assets can RIL monetize between now and Mar-21. Let us look at Jio Platforms first. RIL has already sold 17.2% stake in Jio Platforms and further monetization beyond 20% looks unlikely. After all, Jio Platforms is their big bet for the future and they would not want to give too much away. The plan to sell 20% in the refining and chemicals business to Saudi Aramco for $15 billion is unlikely to happen at current crude price levels. RIL would get around Rs.30,000 crore from tower sale and the oil retail JV with BP. Hence, with the existing resources, it can become zero-debt by Nov-21. The question is whether RIL is willing to wait till Nov-21 to go zero-debt. In the last few months, RIL has been consistent about its intent to become zero net-debt by March 2021 so postponement looks unlikely. We will have to wait and see whether RIL looks at a QIP placement or some other form of monetization. There could be a surprise in store.

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