RIL becomes first Indian Company to be valued at USD 150 Billion

In rupee term, Mumbai based Indian Multinational conglomerate company, Reliance Industries Limited (RIL) on 19^th June 2020 was valued at USD 150 billion following a rise in the share market, this also made RIL the first-ever Indian company to achieve a market value of above Rs 11 lakh crore. The positive growth in the shares of the company was registered after it announced that the company has become net debt-free well ahead of its target of March 2021.

As of 31^st March 2020, Reliance has a total debt of Rs 161,035 crore. Despite a pandemic, airlines & other international travel being suspended and a lockdown in most International business hubs across the world, in a period of 58 days, Reliance Industries was able to raise more than Rs 168,818 crore.

Breakdown of which as follows:

• The existing shareholders of the company were offered shares worth Rs 53,124.20 crore.
• The remaining Rs 115,693.95 crore was raised through 11 deals of stake sale in RIL’s subsidiary Jiop Platforms.

Stake’s of approx 24.70% in Jio Platforms are now owned by the following companies: United States company Facebook bought 9.99% stake at Rs 43,574 crore, this deal to date is the largest Foreign Direct Investment (FDI) in any sector in India. Other companies are Abu Dhabi based investment companies- Mubadala and Abu Dhabi Investment Authority, United States companies- General Atlantic, Silver Lake, Vista Equity Partners, KKR & CO. Inc., TPG Capital, and Catterton Partners. The most recent of the stake sale of 2.32% was on the 18^th of June 2020 to the Public Investment Fund of Saudi Arabia at Rs 11,367 crore.

Month: Current Affairs - June, 2020