Reliance to bag Rs. 20,000 Cr via NCD
- ByStartupStory | January 21, 2023
Reliance Industries (RIL), owned by billionaire Mukesh Ambani, announced its financial results for the quarter ending December 31, 2022 on Friday (Q3FY23). Furthermore, RIL’s board of directors has approved a Rs.20,000 crore non-convertible debenture fundraising.
These NCDs will be distributed in one or more tranches via private placement.
According to RIL’s regulatory filing, the board of directors “approved raising of funds through issuance of Non-Convertible Debentures (NCDs) up to ₹20,000 crore, in one or more tranches/series, on a private placement basis.” The meeting was held on January 20.
RIL earned a consolidated net profit of 15,792 crore in Q3FY23, a 14.8% decrease from the same period a year ago. However, revenue from operations increased by 15% to 2.20 lakh crore in the third quarter of the current fiscal year, compared to 1.91 lakh crore in the same period last year. EBITDA was 38,460 crore, up 13.5% year on year. RIL’s profitability fell short of expectations, but its revenue exceeded them.
Mukesh D. Ambani, Chairman, and Managing Director said, “Our teams across businesses have done an excellent job in delivering strong operating performance through a challenging environment. All segments contributed to the robust growth in consolidated EBITDA on Y-o-Y basis.
Ambani also stated that as part of their commitment to revolutionising the green energy sector, they are making rapid progress toward the implementation of new energy Giga factories in Jamnagar.
“Our strong balance sheet and robust cash flows remains the cornerstone of our commitment in growing existing businesses as well as investing in new opportunities,” Ambani added.
RIL’s capital expenditure was around ₹37,599 crore ($ 4.5 billion) at the end of December quarter.
The company’s outstanding debt was 303,530 crore ($ 36.7 billion) as of December 31, 2022, while cash and cash equivalents were 193,282 crore ($ 23.4 billion). The net debt of RIL is less than the annualised EBITDA.
RIL shares closed at 2,442.70 on the BSE, down 1.15%. RIL has the largest market share and a valuation of more than 16.52 lakh crore as of January 20.
Non-convertible debentures (NCDs) are debentures that can’t be converted into shares or equities. These debentures are offered to investors at a fixed interest rate, but the rate is determined by the company issuing them. NCDs provide diversification, no tax is deducted at the source, healthy liquidity, and higher returns, among other advantages.
Follow Startup Story
Related Posts
