According to Mukesh Ambani, Reliance now has a strong balance sheet to support growth in 2020-21, Reliance has closed India’s largest rights issue for $ 53,124 billion. After record financing and early debt repayment, Reliance Industries Ltd now has a strong balance sheet with high liquidity that will support the growth plans for its three hyper-growth engines: Telecom Arm Jio, the Retail Business and From Oil to Chemicals, the company’s president, and CEO Mukesh Ambani said in the company’s latest annual report released on Wednesday.
He added that the company had minority stakes sold to Jio Platforms, the entity that helps its telecommunications and digital businesses, and retail arm for nearly 2 lakh crore, 49 percent in a co-retailing fuel for Rs 7,629 crore, and an additional amount of Rs 53,124 crore through the issuance of rights. He said that “We now have a strong, high-liquidity balance sheet that will support growth in our plans,” Raised Rs.7629 billion, or Rs 47,265 billion, from strategic and financial investors like Facebook and Google and BP lately invested Rs 7,629 billion for a 49% stake in our fuel retail business, fuel This fundraising lastly helped Reliance achieve its zero net debt target ahead of schedule “We completed the largest ever capital increase in India of Rs 2.60.074 billion (the US $ 36 billion) through the issuance of rights and the monetization of assets(creation of new sources of revenue). The fund-raised increases net debt and helped his company achieve a debt-free balance sheet before the March 2021 deadline,” he said.
He also added that Reliance made an upfront payment of $ 7.8 billion in long-term during the year with the approvals from RBI Foreign Currency Debt This is the highest prepayment debt ever made by a corporate borrower in India.
Ambani also said the past year has been challenging with the COVID-19 pandemic that has disrupted several lives and dealt a severe blow to the nation’s health. Despite the pandemic, Reliance continued to implement its growth plans across all companies, he said. The retail store has increased its physical and digital presence by adding stores, strengthening the supply chain infrastructure, and launching the online delivery platform JioMart.
In the Digital Services sector, it has increased network capacity for the rapid growth in customer base. “Diversified revenue has helped the company to run without any issues in the pandemic,” he said. “Reliance posted consolidated net income of Rs 53,739 billion for the year and posted growth of 34.8 percent compared to the previous year. Consumer companies now account for nearly 50 percent of the segment’s consolidated EBITDA, compared to 36 percent in fiscal 2019-20.
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