According to a report by Edelweiss Securities, Reliance Industries (RIL) is well placed to achieve its target of becoming a zero net debt company by the end of the financial year 2020-21. Further, the company is expected to sell another 3 per cent stake during the fiscal.
The report highlighted that within a span of one month, RIL has already sold over 17 per cent stake in Jio Platforms for around Rs 785.62 billion.
As per Edelweiss Securities, the remaining balance of Rs 277 billion can be raised through three avenues. This includes, stake sale to Aramco, sale of fibre optionally convertible preference shares (OCPS), higher-than-estimated free cash flow (FCF) and further stake sale in Jio.
The report noted that even a 5 per cent stake sale of O2C assets to Aramco can meet the remaining balance need. Meanwhile, RIL’s OCPS in fibre assets, which is believed to be worth Rs 770 billion based on its internal valuation, can be redeemed to raise capital.