The Ambani Conglomerate Becomes Net Debt-Free:

Reliance Jio’s journey has been incredible, attracting about 400 million subscribers in a matter of 4 years since its inception in 2016. It has emerged as the world’s most ambitious tech company. Mukesh Ambani’s Reliance Industries Limited (RIL), became a major wealth creator among Nifty50 stocks during the lockdown as it has doubled investor’s wealth since 23rd March 2020.

It became the first Indian company to hit a market value of ₹11 lakh crore as it becomes net debt-free.

In just 58 days, RIL raised over ₹ 1,68,818 crore through an investment of ₹ 1,15,693.95 crore by global tech investors and rights issue of ₹ 53,124.20 crore. As on 31st March 2020, the oil-to-telecom conglomerate’s net debt stood at ₹ 1,61,035 crore, and with these new investments now, the Company has become net-debt free. This unprecedented growth has become a threat to the other telecom players in India.

RIL Jio’s Overseas Listing:

On 17th May 2020, Finance Minister Nirmala Sitharaman gave a heads-up for direct listing of Indian companies on foreign exchanges. It is expected that the telecom giant will get listed internationally. The overseas listing will have advantages like better valuation, global brand recognition, greater liquidity, and better corporate governance. Going overseas might also boost the Company’s funding prospects, and therefore Jio is likely to receive a higher valuation, which would offer private investors a much attractive return.

“I have fulfilled my promise to the shareholders by making Reliance net debt-free much before our original schedule of 31st March 2021. I have no doubt that your company will have one of the strongest balance sheets in the world.” – Mukesh Ambani, Chairman, and MD of Reliance Industries.

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