Reliance’s stake sale in retail will allow growth with zero net debt: Moody’s

Moody’s Investors Service said on Monday that Reliance Industries Ltd’s (RIL’s) divestment of 1.75 per cent stake in its retail arm to private equity firm Silver Lake Partners for ₹7,500 crore is credit positive as it will enable the Indian conglomerate to continue pursuing other growth opportunities while maintaining zero net debt.

The deal is the company’s first divestment within the retail segment, which is currently wholly-owned by RIL. With this deal, RIL has now established an enterprise value for its retail segment which sets the stage for further stake sales within the segment, said Moody’s.