Reliance Industries Shares Hit New Record High After Group Becomes Net Debt-Free

Edited by Sandeep Singh

19 Jun 2020, 10:10 AM IST

Shares in Reliance Industries Limited (RIL) are up9.39% so far this year

Reliance Industries Limited (RIL) shares jumped nearly 2 per cent to scale a new record high on Friday, shortly after the conglomerate's chairman Mukesh Ambani said his group has become net debt-free much before schedule. the Reliance Industries stock climbed up to trade at Rs 1,689 apiece on the BSE - its highest intraday level recorded ever - compared to its previous close of Rs 1,656.25. At 10:34 am, Reliance Industries shares traded up 1.82 per cent at Rs 1,686.45 on the BSE, outperforming the S&P BSE Sensex benchmark index which was up 0.34 per cent.

Reliance Industries said it has raised more than Rs 1,68,818 crore in 58 days, taking into account investments of Rs 1,15,693.95 crore in its digital services arm and Rs 53,124.20 crore through the issue of rights.

With these investments, the group said it has become net debt-free. Its net-debt had stood at Rs 1,61,035 crore as of March 31, 2020.

“Today I am both delighted and humbled to announce that we have fulfilled our promise to the shareholders by making Reliance net debt-free much before our original schedule of 31st March 2021. Exceeding the expectations of our shareholders and all other stakeholders, again and yet again, is in the very DNA of Reliance,” said Mukesh Ambani, chairman and managing director of Reliance Industries.

"Therefore, on the proud occasion of becoming a net debt-free company, I wish to assure them that Reliance in its Golden Decade will set even more ambitious growth goals, and achieve them," he said.

"Over the past few weeks, we have been overwhelmed by the phenomenal interest of the global financial investor community in partnering with Jio," he said.

Reliance Industries has sold a total 24.70 per cent stake in Jio Platforms in 11 deals for Rs 1,15,693.95 crore within nine weeks starting April 22. (Read more)

The RIL shares have broken a slew of records in the past few days, rising on the back of investment in Jio as well as the success of the rights issue, say analysts.

At Thursday's close, the RIL stock is up 9.39 per cent so far this year, sharply outperforming the benchmark S&P BSE Sensex index which has fallen 17.08 per cent.