On Aug 12th 2019, Reliance Industries CMD Mukesh Ambani had set a target of being debt free by March 2021. Back then, it had pointed out that strategic and financial investors had envisaged strong interest in its consumer businesses. As on March 31st it had a net debt of Rs 1,61,035 crore. On June 19th RIL announced it had become net debt free while announcing its Q4 FY20 results.
Here's what resulted the company in achieving its target EIGHT months ahead of their schedule
Source: MoneyControl
In 58 days RIL struck 11
deals for its digital unit Jio Platforms, along with a rights issue. These
deals resulted in a cumulative edition of Rs 115,693.95 crore. The rights issue
garnered Rs 53,124.20 crore.
On April 22nd,
RIL announced its first deal with Facebook. The latter invested Rs 43,574 crore
in exchange for a 9.9% stake valuing Jio at Rs 4.62 lakh crore.
On May 4th,
American private equity giant Silver Lake Partners bought 1.15% stake for Rs
5,655 crore. The deal valued Jio at Rs 5.15 lakh crore.
On May 8th,
US based Vista Equity Partners picked up a 2.32% stake for Rs 11,367 crore
becoming the third biggest investor in 16 days.
On May 17th,
Jio bagged its fourth biggest investment from General Atlantic. The latter
invested Rs 6,598 crore for a 1.34% stake.
On May 22nd,
all retail to telecom major announced an investment from private equity major
KKR in its digital arm. KKR invested Rs 11,367 crore for a 2.32% stake.
On June 5th,
Abu Dhabi's sovereign fund Mubadala investment company invested Rs 9093 crore
in return for 1.85% stake. This marked Jio's sixth investment in six weeks. On
the same day Jio Platforms saw Silver Lake Partners returning with an
investment of Rs 4,546 crore for an additional 0.93% stake.
On June 7th,
ADIA (Abu Dhabi Investment Authority) one of the world biggest sovereign wealth
funds invested Rs 5,683 crore for a 1.16% stake.
On June 13th,
TPG which backs companies like Airbnb, Uber, Spotify joined the rush of
investors of Jio Platforms pumping in Rs 4,546 crore for 0.93% stake. On the
same day US based L Catterton became 10th investor in Jio investing Rs 1,894
crore for 0.39% stake.
On June 18th Saudi
Arabia's PIF (Public Investment Fund) decided to infuse Rs 11,367 crore for a
2.32% stake marking the end of phase one of financial partner inductions in
Jio.
RIL shed 24.7% stake
with these 11 investments in nine weeks. Along with the stake sale to UK based
multinational oil & gas giant PP in its petrol retail joint venture the
total fund raise is over Rs 1.75 lakh crore way higher then company's debt as
on March 31th.
Source: Entrackr
Apart from this, three
more investment announcements came until July 15th. US semiconductor giant
Intel became the second strategic investor in Jio Platforms after Facebook. It
invested Rs 1,894 crore in Jio Platforms in exchange for a 0.39% stake.
Qualcomm invested Rs 730 crore in Jio fir a 0.15% stake. Google has pumped in
Rs 33,737 crore for 7.7% stake in Jio becoming its second largest investor.
Thumbnail Credits: KalingaTv
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