Mukesh Ambani said – Reliance in strong position for growth, enough cash available
After raising record capital from leading investors across the world, Reliance Industries Ltd Chairman and Managing Director Mukesh Ambani said that the company is now well positioned to continue on the path of growth. The company has sufficient liquidity in its books to support growth in its three businesses ranging from telecommunications, retail and oil to chemicals.
Raised another Rs 53,124 crore through rights issue
In the company’s latest annual report released on Wednesday, he said that the company has sold minority stake in Jio Platforms and retail business unit worth Rs 2 lakh crore. Apart from this, another Rs 53,124 crore has been raised through rights issue. Jio Platforms run the company’s telecom and digital business. “We have a strong ledger with high liquidity which will aid in growth plans for our three fast growth engines Jio, Retail and Oil-to-Chemicals,” Ambani said.
In the year 2020-21, Reliance successfully completed the rights issue of Rs 53,124 crore. The issue was subscribed 1.59 times. This was the biggest rights issue to be seen. Throughout the year, Jio Platforms and Reliance Retail raised Rs 1,52,056 crore and Rs 47,265 crore respectively from various strategic and financial investors, including Facebook and Google, he said.
Zero debt company Reliance Industries
BP (British Petroleum) invested Rs 7,629 crore for a 49 per cent stake in our fuel retailing business. Ambani said that thanks to these investments, Reliance Industries became a zero-debt company ahead of schedule. Ambani said, “Such strong finance flows and the largest capital raises have further strengthened our books of account, enabling us to meet our commitment to clear dues before the stipulated time frame and become a net zero debt company.”During the year, Reliance made prepayment of long-term foreign currency debt of $7.8 billion”, he said. Necessary approval was obtained from the Reserve Bank for this. This was the largest prepayment of debt by any company in India.