Mukesh Ambanii led Reliance Industries raised Rs 1,68,818 crore in a short span of just 58 days, setting a record. During this period, Rs 1,15,693.95 crore was invested by global investors in Reliance’s subsidiary Jio Platforms. At the same time, Reliance raised Rs 53,124.20 crore through a rights issue.
Raising so much capital globally in such a short time is a record. These are unprecedented for Indian corporate history as well. Importantly, this fund-raising goal was achieved amid the global lockdown caused by the COVID-19 pandemic.
Adding to this the agreement reached with BP in the petro-retail sector, Reliance has acquired a total fund of over Rs 1,75,000 crore. The net debt of the company as on 31 March 2020 was Rs 1,61,035 crore. After this investment and rights issue, the company has become completely debt free.
The investment in Jio platforms has been going on for the last 58 days. Investors have invested Rs 1,15,693.95 lakh crore for 24.70% equity in Jio platforms. On Thursday, PIF announced an investment of Rs 11,367 crore in Jio Platforms for 2.32% equity. PIF was the last investor in this phase of investment in Jio platforms.
The RIL rights issue was subscribed 1.59 times. It was the world’s largest rights issue by a non-financial institution in the last ten years. On August 12, 2019, at the 42nd AGM of Reliance Industries Limited, Mukesh Ambani assured shareholders that debt should be relieved before March 31, 2021.
Expressing gratitude for the achievement of debt freeing, Mukesh Ambani said today, “Today I am very happy to fulfill my promise to the shareholders to make Reliance debt free before the target of 31 March 2021. Our DNA lives up to the expectations of our shareholders and all other stakeholders. So on the proud occasion of Reliance becoming a debt-free company, I want to assure them that in its golden decade, Reliance will set even more ambitious growth targets and take that vision of our founder Dhirubhai Ambani to achieve those goals Will fully adopt that is to continuously increase our contribution to India’s prosperity and inclusive growth. “
Mukesh Ambani added: “For the past few weeks we have been overwhelmed by the unprecedented interest of the global financial investor community to invest in Jio. The goal of raising funds from financial investors has been reached. We heartily thank our group of important investors and warmly welcome them to Jio Platforms. I sincerely thank all the retail and domestic and foreign institutional investors for their huge and record participation in the rights issue. “
