Reliance Industries, India’s most valuable company has achieved two momentous feats✌️ almost simultaneously.
The company has become free of net debt😊, much earlier than its March 2021 target.
This target was set☝️ by the company’s chairman, Mukesh Ambani at the company’s annual general meeting last August.
Net debt is the excess of cash and cash equivalents over the total debts of an entity.
Apart from shedding off its debt burden, Reliance also became the first Indian company to cross $150 billion (Rs. 11.15 lakh crore) in market capitalization😳.
How was this achieved?
Since April🗓️, Reliance has succeeded in raising over Rs. 1.68 lakh crore against its net debt of Rs. 1.61 lakh crore, as on 31st March 2020.
The company received investments💰 of Rs.1.15 lakh crore by global tech investors as well as private equity and sovereign wealth funds in its wholly-owned subsidiary, Jio Platforms Ltd.
Apart from selling stakes in Jio, Reliance raised Rs. 53,000 crore by rights issue.
Not only was it the largest ever in India, but also the largest in the world🌏 in the past ten years by a non-financial entity.
Remarkably, Reliance raised all of this funding, right in the middle of a global lockdown🔒 caused by the Covid-19 pandemic.
The company also earned Rs. 7,000 crore last August by selling its stake to BP in their petro-retail⛽ joint venture.