Mukesh Ambani led Reliance Industries Ltd., said it has become free of net debt months ahead of a March 2021 target after lifting more than $23 billion from its stake sales and a rights issue.
Reliance Industries Ltd., India’s most prestigious company, said in a statement on Friday that it acquired 1.16 trillion rupees ($15.2 billion) by bringing investors for the company like Facebook Inc. and a sudden turn away of funds into the digital business, that is Mukesh Ambani’s ambition to transform his empire.
Recently, Reliance finished a 531.2-billion rupee share sale to the existing shareholders. The company also sold a stake in its energy business to BP Plc.
Last year in the month of August, Asia’s richest man, pledged to his shareholders to gash the group’s net debt to zero within 18 months. Mukesh Ambani went on a binge fundraising from late April, in spite of the fact India being under coronavirus lockdown.
Ambani proved skeptics wrong by attracting several partners to Jio Platforms Ltd. Earlier the company also planned a $15 billion stake sale in its oil business to Saudi Arabian Oil Co.
Chakri Lokapriya the chief investment officer at TCG Asset Management in Mumbai said “It’s a tremendous lockdown achievement.”
This move will tell the investors that Reliance is further transforming the company’s growth engine into a technology platform, he added.
Reliance on Friday said that it had afflicted up a total debt of 1.6 trillion rupees as of the month of March, for rolling out Reliance Jio Infocomm Ltd., the company’s wireless carrier. Reliance Jio Infocomm Ltd. made its debut in 2016 and within three years became India’s biggest telecom company.
Reliance’s shares hiked 6 per cent to end at an all-time high, making the company’s market value to $151 billion. The stock has doubled from its 23rd March low.
“I am both delighted and humbled to announce that we have fulfilled our promise,” Ambani said in a statement.