Reliance Industries (RIL) on June 19 said it is moving towards the listing of Jio and Reliance Retail within the next 5 years, the company said in a press release.
The company said it has become completely net debt-free and has raised over Rs 1.68 lakh crore in just 58 days, hinting that it will have one of the strongest balance sheets in the world.
Stock market expert SP Tulsian of sptulsian.com told CNBC-TV18 that the stock of Reliance Industries may see a big re-rating. He has a target of Rs 1,900 on the stock, which Tulsian believes, it can achieve by March 2021.
Tulsian sees retail as the next growth driver for Reliance.
"The company's first goal of being debt-free has been achieved and now he does not see any further dilution in Jio Platform. The next growth area will be Reliance Retail," he said.
"If you compare Reliance Retail with DMart, having a market capitalisation of 1.5 lakh crore with the topline of 25,000 crore, Reliance Retail has a topline of about 2 lakh crore. So, it is about 7 times the size of the topline. I guess the valuation of Reliance Retail can be between 4-5 lakh crore," Tulsian said.
"Probably the process of the induction of strategic and financial investors in Reliance Retail will happen like in Jio Platform," said Tulsian.
Tulsian said Jio may not see Indian listing as it will not be able to capture full value of the stock.
Jio may see an overseas listing in the next couple of years to give maximum value to the Reliance shareholders. Because if Jio is listed on Indian bourses, then the discounting of the holding company will start and Reliance Industries may not capture the true value. But if the Jio Platform is listed overseas then the holding company can capture the full value.
The oil-to-telecom behemoth, Reliance Industries on June 19 said it has raised over Rs 1,68,818 crore in just 58 days through the investments by global tech investors (Rs 1,15,693.95 crore) and rights issue (Rs 53,124.20 crore).
Along with the stake sale to BP in the petro-retail JV, the total fundraising is in excess of Rs 1.75 lakh crore.
"Our net-debt was Rs 1,61,035 crore, as on March 31, 2020. With these investments, RIL has become net debt-free," said the company.
"The combined capital raised has no precedence globally in such a short time. Both of these are also unprecedented in Indian corporate history and have set new benchmarks. This is even more remarkable that this was achieved amidst a global lockdown caused by the COVID-19 pandemic," the company said in a media release.
Jio platforms has raised Rs 1,15,693.95 crore from leading global investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG, L Catterton and PIF since April 22, 2020.
PIF’s investment marks the end of Jio Platforms’ current phase of induction of financial partners, the company said.
The RIL Rights Issue, which was subscribed 1.59 times, was not only the largest ever in India but also the largest in the world by a non-financial entity in the last ten years.
“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 March 31, 2021," said the group's Chairman Mukesh Ambani.
"Exceeding the expectations of our shareholders and all other stakeholders, again and yet again, is in the very DNA of Reliance. 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, in fulfillment of the vision of our Founder, Dhirubhai Ambani, to consistently increase our contribution to India’s prosperity and inclusive development,” he said.
On 12th August 2019, at the 42nd AGM of Reliance Industries Limited, Ambani had assured the shareholders about his roadmap for Reliance becoming a net-debt free company before March 31, 2021.
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