NEW DELHI: Having ended the last year with a net debt of ₹154,478 crore, Reliance Industries chairman and managing director Mukesh Ambani has laid out a roadmap to make the conglomerate a zero net-debt company in just 18 months. At RIL AGM in Mumbai, Ambani also announced that he is planning to list both Reliance Jio and Reliance in the next five years.
Mukesh Ambani said RIL is now coming to the end of its largest capital expenditure cycle after having invested ₹5.4 lakh crore in the last 5 years.
5 things to know about Mukesh Ambani's plan for Reliance Industries' balance sheet:
1) "We have a very clear roadmap to becoming a zero net debt company within the next 18 months that is by 31st March 2021," Mukesh Ambani announced at RIL AGM. After announcing a ₹5,32,00 crore deal with Saudi Aramco and a ₹7,000 crore deal with BP, Ambani said the two deals will create win-win relationships, generating significant strategic value for its partners. "We expect to complete these transactions within this financial year subject to definitive agreements, due diligence, regulatory and other customary approvals. The commitments from these two transactions are about ₹1.1 lakh crore," he said.
2) Reliance Industries has also received strong interest from strategic and financial investors in its consumer businesses, Reliance Jio and Reliance Retail. "We will induct leading global partners in these businesses in the next few quarters, and move towards listing of both these companies within the next five years," Ambani said.
3) Reliance Industries will also evaluate value unlocking options for our real estate and financial investments. "With these initiatives, I have no doubt that your company will have one of the strongest balance sheets in the world," Ambani told shareholders.
4) Last year, RIL had transferred its telecom infrastructure assets to two separate infrastructure trusts for a consideration of ₹1.25 lakh crore with the intention of raising this money from large global institutional investors. "We have received strong interest and commitments from reputed global investors and are confident that these transactions will be completed by the end of this Financial Year," Ambani said.
5) To RIL shareholders, Ambani made a no-holds-barred promise of higher dividends and bonus issues. "As we achieve our zero net-debt target, I assure you my dear shareholders that we will reward you abundantly through higher dividends, periodic bonus issues and other means, and at a more accelerated pace than any time in our history," he said.