According to a report by Bernstein Research, Reliance Industries Limited (RIL) may launch IPOs of Reliance Jio and its retail business segment in the near future, thereby unlocking additional shareholder value.
RIL has already raised $22.3 billion capital market through the sale of 24.7 per cent stake in Jio Platforms and $7 billion equity-raise.
Following this, RIL has being able to significantly improve its financial position. Further, the net debt to equity is expected to fall significantly from 0.51x in FY20 to 0.06x in FY21. Moreover, the finalisation of the Aramco deal worth $15 billion and free cash flow outlook in the next several years could result in a further fall in the net debt to equity beyond FY21.
The report noted that owing to the company’s expansion into internet and retail, more investments including mergers and acquisitions could take place.