Mukesh Ambani says after 'unprecedented' fund raising, RIL working to close Aramco deal

MUMBAI: Billionaire Mukesh Ambani has said that after the recent fund raising activity, which he refers to as an unprecedented event in Indian corporate history, the company is now moving towards closing its deal with Saudi Aramco.
Reliance Industries (RIL) raised Rs 168,818 crore in two months through the country’s largest ever rights issue and series of stake sale deals in its arm Jio Platforms, delivering on a promise given to shareholders in August last year. The company is now working on delivering another promise-- stake sale in its oil-to-chemicals business to Saudi Aramco.

“In the energy businesses, Reliance is working to complete the contours of a strategic partnership with Saudi Aramco. The partnership gives our refineries access to a wide portfolio of value-accretive crude grades and enhanced feedstock security for a higher oil-to-chemicals conversion,” Ambani said in the company’s annual report for 2019-20.

At the company’s annual general meet last year, Ambani had announced his ambition to reduce the net debt of RIL to zero in almost 18 months. The same day, RIL announced that it was in talks with Saudi Arabian energy giant Aramco to sell 20% stake in its oil-to-chemicals business at an enterprise value of $75 billion. This deal was originally expected to be closed by March 2020.

The conglomerate raised Rs 53,124.20 crore by offering shares to existing shareholders, and another Rs 115,693.95 crore through sale of stake in Jio Platforms through 11 deals in a matter of 58 days while India was under a lockdown due to the Covid-19 pandemic.

“The combined capital raised has no precedence globally in such a short time. Both of these are also unprecedented in Indian corporate history and have set new benchmarks. This is even more remarkable that this was achieved amidst a global lockdown caused by the Covid pandemic,” Ambani said.

The company said that the diversified earnings streams and conservative balance sheet places RIL at an advantageous position to face the ongoing macro challenges.

“We are fully committed to our investment plans in our consumer businesses and new initiatives. We are at the doorsteps of a huge opportunity and our rights issue and all other equity transactions will strengthen Reliance and position us to create substantial value for all our stakeholders in the years to come,” he said.

The company will hold its first even virtual annual general meeting on July 15.