RIL balance sheet to strengthen post unlocking Jio value

Mumbai: Reliance Industries will strengthen its balance sheet in fiscal 2020, as it will take steps towards unlocking value in its telecom unit Jio Infocomm.

“There are few triggers, which are working in favour of Reliance. I think FY20 would be a year where Reliance would strengthen its balance sheet and the first step towards strengthening balance sheet is the unlocking value in Jio,” Sudeep Anand, head of institutional research at IDBI Capital Markets told ET NOW.

RIL is in the process of demerging fibre assets into a separate company, which could then be monetised via a sale and leaseback or infrastructure investment trust (InvIT) structure. However, it is keen to continue as the sponsor of the InvIT and even retain a minimum 15% stake in it.