The Reliance Industries Ltd, is aiming to become a net-zero-debt company, has given a statement that it will take into consideration a rights issue of equity shares in its board meeting on 30 April 2020. RIL is the most valuable listed firm in India, with a market capitalization of Rs 9.25 lakh crore.
And Reliance Industries Ltd. is also one of the highest indebted companies of the country, with a gross debt of over Rs 3 lakh crore, and net debt of over Rs 1.5 lakh crore. Not only this, RIL is one of the most cash rich companies with over Rs 1.3 lakh crore cash in hand.
Earlier, in August last year, RIL Chairman Mukesh Ambani said he has pledged to make the company a ‘zero-net-debt’ firm.
In a notice served to the stock exchanges late yesterday, RIL said that, it will take into consideration a proposal to issue equity shares to existing shareholders on Rights basis, subject to law and regulation.
The company withheld the details of the proposed issue such as the size of the issue, proposed equity dilution, date, etc. Considering RIL’s current market capital of Rs 9.25 lakh crore, and having India’s largest retail shareholder base, one can expect the rights issue to provide it with sufficient firepower to cut the debt.
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