InvestorQ : Does Reliance appear to be on track to become zero-debt by first quarter of calendar year 2021?
Anamika Sodhani made post

Does Reliance appear to be on track to become zero-debt by first quarter of calendar year 2021?

Answer
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3 months ago


While the numbers are still formidable, it now looks increasingly likely that RIL may turn zero net debt by March 2021. After the series of equity placements in Jio Platforms and the recent rights issue, it looks like RIL may pay back the debt even if the Saudi Aramco deal for the chemicals / refining business of RIL gets delayed. As of March 2020, RIL had net debt to the tune of Rs.1.61 trillion and the stake sales and the rights should give RIL more than Rs.1 trillion in immediate cash. In addition, RIL will also get money from its sale of stake in oil market business to BP and the sale of towers to Brookfield. Then it has Rs.1 trillion likely to come from Saudi Aramco deal and another Rs.1.2 trillion from its Fibre INVIT. The amount payable on application for the rights issue is only 25% so that would still leave a huge gap.