Reliance Industries, India's largest company, has a debt of millions of crores of rupees, but now it is getting investment. Let us tell you that Mukesh Ambani, chairman of Reliance Industries, had decided to make the company debt-free by March 2021 and they are moving very fast in this direction. Five different investors have invested more than 78 thousand crores in this company in the last few weeks. With this, the deal with many investors is in the final stages. In such a situation, this company is going to be debt free soon.
It is reported that even if Reliance's deal with Saudi Aramco is delayed, it will still be in a position to pay back its entire net debt. Mukesh Ambani-controlled Reliance Industries raised a total of Rs 78,562 crore by selling minority stake in its digital unit to Facebook and private equity companies like Silver Lake, Vista Equity, KKR and General Atlantic. Apart from this, the company is also raising Rs 53,125 crore through rights issue.
A research report by Edelweiss about the company says that after recent deals, we have analyzed the books of Reliance Industries. The company has raised Rs 1.3 lakh crore in the form of equity during the last month. We estimate that even if the Aramco deal is delayed, the company will be able to pay its entire net debt of Rs 1.6 lakh crore in 2020-21.
It has also been said that the company's net debt (total debt) is close to Rs 2.57 lakh crore and it will take longer to repay. Edelweiss has said that the capital expenditure of Jio, the telecom arm of the company, has been largely met. In such a situation, Reliance Industries will be able to achieve free cash flow of Rs 20,000 crore in 2020-21, despite lower income from oil and gas sector.
The brokerage company said, "We estimate that Reliance Industries will sell a 20 percent stake in Jio. Apart from this, the company will have Rs 1.3 lakh crore in cash after selling the 49 per cent stake in the retail business of fuel to Bharat Petroleum for Rs 7,000 crore. In such a situation, the company will be able to achieve the goal of becoming debt free in 2020-21.
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