After making debt-free Mukesh Ambani , Reliance Industries can no longer continue IPO to live platforms (Jio Platforms) and retail business.
Bernstein Research gives this information in its report. The company has raised liquidity of $ 22.3 billion (about Rs 1.7 lakh crore) in the last two months. The company has sold a 24.7 percent stake in Jio for about 1.16 lakh crores. Apart from this, 53 thousand crores have been earned by the right issue tax.
Reliance has become debt-free after collecting funds of 1.7 lakh crores. If we pay attention to its balance sheet, the net debt to equity ratio was 0.51 times in FY 2019-20, which is likely to come down to 0.06 times in FY 2020-21. This will be the lowest level in the last decade.
Reliance Industries’ $ 15 billion deal with Saudi Aramco is yet to be completed. Reliance is to sell a 20 percent stake in the $ 75 billion oil-to-chemical business to Saudi Aramco for $ 15 billion. At present, negotiations are going on regarding this deal.
In such a situation, the company can use the extra cash to pay the deferred payment, which is about 50 thousand crores. The brokerage firm says that in FY 2020-21, the company’s EBIDTA (Earnings before interest, taxes, depreciation, and amortization) could be close to 86,000 crores. It will be almost twice as much as last year.
