Reliance Industries to raise another Rs 2,500 crore in debentures

Reliance Industries Ltd said on Thursday that the company has proposed to offer non-convertible debentures worth Rs 2,500 crore on a private placement basis. “Pursuant to the authority given by the shareholders of the company at the Annual General Meeting held on 21 July 2017, it is proposed to make an offer for the issuance of non-convertible debentures (NCDs Series E) (5th Tranche) on private placement basis on Tuesday, 14 November 2017 aggregating Rs 2,500 crore, to be listed on the stock exchanges,” RIL said in an exchange filing.

“The net proceeds of the issue will be utilised inter-alia for refinancing of existing borrowings and/or for any other purpose in the ordinary course of business,” RIL added. Shares of Reliance Industries ended 1.5% higher at Rs 901.55 on BSE today. In the intraday trade, the stock jumped 2.34% to hit a day’s high of Rs 909.1. The announcement came in just after the oil-to-telecom conglomerate RIL yesterday said that it had issued and allotted the fourth tranche of unsecured non-convertible redeemable debentures.

The issue size of Rs 5,000 crore contains 50,000 unsecured non-convertible debentures of the face of Rs 10,00,000 each. The debentures are proposed to be listed on BSE. Investors can redeem the (PPD – Series D) debentures at par value at the end of the fifth year from the date of allotment i.e. 8 November 2022. The company has fixed a coupon rate of 7.17% per annum payable annually on the outstanding PPD series D at the end of every year from the date of allotment, which turns out as Rs 71,700 (at a coupon rate of 7.17%).

In July 2017, Reliance Industries telecom company Reliance Jio launched a rights issue of shares to raise Rs 20,000 crore. Notably, Reliance Jio has already seen massive investments and commitments worth just shy of Rs 2 lakh crore. Earlier in April, Reliance Industries proposed to raise its capital expenditure on Reliance Jio by Rs 18,000 crore in that quarter itself, adding to the Rs 1.79 lakh crore that it had already put into the venture thus far. Reliance Jio had said that it would add another 100,000 towers to the existing network of 100,000 mobile towers.

Reliance Industries Limited (RIL)