Reliance selling 17% stake in Jio Platforms in 1 month to help pare half its net debt: Moody’s

Reliance Industries selling over 17 per cent stake in its digital unit Jio Platforms for a combined Rs 78,562 crore in one month will help pare about half of its net debt of Rs 1.61 lakh crore, Moody’s Investors Service said on Friday.

The credit rating agen the comment on a day when Reliance announced sale of 2.32 per cent stake in Jio Platforms to global investment firm KKR & Co. Inc for Rs 11,367 crore — the fifth deal in four weeks that will inject a combined Rs 78,562 crore in the oil-to-telecom conglomerate to help it pare debt.

“Proceeds from these divestments alone will help the company pare around 49 per cent of its net debt of Rs 1.61 lakh crore outstanding as of March 31, 2020,” Moody’s said in an issuer note.