Reliance plans to borrow Rs400,000 cr in retail push: report
18 Jul 2018
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Reliance Industries Ltd plans to raise about Rs40000 crore ($5.8 billion) in fresh debt this financial year in its push to expand its consumer businesses into online retailing, reports quoting sources close to the development said.
The Mukesh Ambani-led refining-to-retailing conglomerate proposes to raise funds through loans and rupee bonds, in the domestic market, a Bloomberg Quint report quoting unnanmed sources as saying.
RIL already has shareholder approval for raising as much as Rs20,000 crore through non-convertible debentures.
Reliance’s total debt tripled in the past five years to more than Rs3,30,000 crore as it spent more on a new telecom venture and its traditional petrochemicals business. The company will also roll out fiber-based broadband services next month.
Analysts expect the company’s net liabilities to increase this year, mostly due to the Reliance Communications transaction, before falling in the financial year ending March 2021 as cash flows improve.
Reliance has also to find funds for the proposed acquisition of assets from Reliance Communications, which includes about Rs17300 crore for spectrum, mobile-phone towers and fiber assets and another Rs5,000 crore for textile-maker Alok Industries, which it won in an auction under India’s bankruptcy rules.
Funds are also needed for the roll-out and expansion the fiber-based broadband services, JioGigaFiber, that will launch across 1,100 cities in August. In addition, RIL will spend on acquiring apparel brands and opening new retail outlets, the report stated.
