RIL will raise Rs 25 billion in tranches through ENT
Mumbai: Industries controlled by billionaire Mukesh Ambani (RIL) plan to raise Rs 25,000 crore through non-convertible bonds (). The amount will be raised in tranches and in a private placement, the company informed the stock exchanges. , which operates the world's largest refinery complex in, did not share details on the Rs 25 billion NCD problem and its purpose of use.
RIL's fundraising move comes amid the coronavirus outbreak that has impacted stock valuations and has delayed stock sale plans in its telecom, retail and refining businesses. The last time RIL took advantage of the NCD route was in March 2019. At that time, it had raised Rs 7 billion from institutional investors.
From a peak just above the Rs 10 lakh-crore mark in mid-January of this year, RIL has lost 32% of its market value to Rs 6.5 lakh-crore now.
Its shares were affected by the broader stock market defeat caused by the pandemic, which has reduced BSE's market capitalization by almost the same magnitude as RIL's to Rs 109 lakh crore from Rs 160 lakh crore.
Consequently, the net worth of Ambani's stake in RIL also experienced a sharp drop of around Rs 3.4 lakh crore from Rs 50 lakh crore on January 17, the day it was at its peak in 2020.
Last week, Ambani and his family bought RIL shares worth Rp 9 billion from the open market, increasing their stake in the energy company for education. Promoters of several Indian companies have been buying their shares on the open market in recent weeks taking advantage of falling stock prices and betting on a rally after a coronavirus-induced defeat. -19 outbreak that stopped travel, restricted commercial activities and forced blockades in several countries. Except for supermarkets and telecommunications, RIL's consumer unit could see a loss in revenue, according to analysts tracking the company. Analysts have also reviewed the performance of RIL's refineries and petrochemicals sales, as the demand for fuels for air and ground transportation has been significantly affected after the Covid-19 outbreak.