InvestorQ : Is it really possible for Reliance Industries to become zero debt company by March 2021 as Mr. Ambani has been claiming?
manisha Kolvenkar made post

Is it really possible for Reliance Industries to become zero debt company by March 2021 as Mr. Ambani has been claiming?

Answer
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Mahima Roy answered.
5 months ago


You need to understand that the monetization of assets is the key to RIL becoming a zero debt company. The effort started way back in 2019 itself. Firstly, RIL agreed to sell 50% stake in its fuel marketing business to BP for Rs.7000 crore. Then it also struck a deal with Brookfield of Canada to sell its telecom tower business for Rs.25,000 crore. In the biggest deal of all, RIL struck a Rs.110,000 crore deal with Saudi Aramco to sell 20% stake in its refining and chemicals business. However, these deals are still to achieve fruition due ot extraneous factors.

Then comes the big deal shifts in 2020. RIL announced the sale of 9.99% stake in Jio Platform to Facebook for Rs.43,500 crore. This was topped up by another Rs.53,120 crore rights issue. These will generate enough cash for RIL to substantially wind down its net debt. If Aramco deal goes through, even partially, then RIL should be on target to become zero-net debt by March 2021. Now, RIL is planning to become zero net-debt by December 2020 itself, but that is something you will have to wait and watch.