Posts

Showing posts from September, 2020

Reliance Jio & Reliance Retail Deal - Corporate Restructuring for Net Debt Free Company

Image
" Goal of Debt Free Company " In the AGM of FY 2018-19, Mr. Mukesh Ambani had shared his goals of growing businesses through partnerships and achieving a Net Debt Free Balance Sheet by Mar’21 and this goal has been fulfilled well ahead of the timelines that had been set. In a short span of a few months, they have raised a record amount of capital and forged several new strategic partnerships.  Reliance raised Rs.1.52 lakh crore from global tech investors by stake selling in Jio Platforms Ltd and another Rs.13,300 crore through a rights issue. Taken together with sale of 49% stake in fuel retailing venture to BP Plc of UK for Rs.7,629 crore, the total fund raised is about of Rs.2 lakh crore. This fund raising process is mentioned hereunder: A. Right Issues by RIL RIL's Rs.53,124 crore rights issue was India's largest-ever rights issue. It was also the world's largest rights issue by a non-financial institution in the last ten years. It ended last week with a 1.