TNN

Mumbai:

Rating agency

Moody’s has said that the capital-raise by

Reliance Industries

(

RIL

) through its subsidiary

Jio Platforms

can help the company reduce around 49% of its net debt. “These divestments are credit-positive because proceeds from sales of the stakes will be used for debt reduction and bring the company closer to its target of reducing its net debt to zero by March 2021,”

Moody’s

said.

The agency noted that RIL has so far announced the divestment of an 18.01% stake in

Jio

Platforms for Rs 78,560 crore ($10.5 billion). Proceeds from these divestments alone will help the company pare around 49% of its net debt of Rs 1.6 lakh crore ($21.4 billion) outstanding as of March 31, 2020. The agency has forecast that the company’s net debt to ebitda (earnings before interest, taxes, depreciation, and amortisation) will improve to below 2x in the current fiscal.

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