InvestorQ : Is Reliance Industries now on target to become zero debt by March 2021? What is your view on this topic?
shrinidhi Rajan made post

Is Reliance Industries now on target to become zero debt by March 2021? What is your view on this topic?

Answer
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Riya Dwivedi answered.
5 months ago


In fact, Mukesh Ambani has accelerated the timeframe for becoming zero-net debt and pulled the date back to 31st December 2020 itself. RIL recently completed the $5.7 billion (Rs 43,547 crore) deal with Facebook. In addition, the board of RIL has also approved the Rs.53,125 crore rights issue. The CFO at RIL has now confirmed that the zero net debt target would now be achieved by end of 2020 itself. Recently, Ambani also got CCI approval for the sale of 50% stake in the oil marketing business to British Petroleum. That only leaves the Saudi Aramco deal still in limbo due to the oil price crisis globally. Saudi Aramco is to buy a 20% stake in the oil and chemicals business of RIL for a consideration of $15 billion. That deadline had been missed due to differences over deal structure and later the COVID-19 lockdown. As of March 2020, RIL has total outstanding debt of Rs.336,294 crore a cash balance of Rs.175,259 crore leaving the net debt at Rs.161,035 crore. Post Facebook deal, Jio Platforms will retain Rs.14,976 crore and use the balance Rs.28,598 crore to close debt.