RIL promoters show commitment to make it debt-free

ET Intelligence Group: The promoters of Reliance Industries (RIL) are committing at least Rs 26,000 crore to the rights issue at India’s most valuable company. The sheer size of that commitment should convince Dalal Street about the seriousness of the oil-totelecoms conglomerate to be net debt free — by the end of FY21.

The rights issue would lead to equity dilution of 6.6 per cent. This mega issue for the existing investors, the just-announced stake sale to Facebook, and anticipated cash inflows from BP for the petroleum retailing deal would together account for Rs 1.04 lakh crore. And all that cash would flow into the RIL balance sheet over the course of FY21.