Reliance Industries Considers Raising Rs 15,000 Crore Via Sale Of Local Currency Bond: Report

Reliance Industries is considering raising Rs 15,000 crore ($1.8 billion) through the sale of a local-currency bond, according to a Bloomberg report citing sources.

It is believed that the said rupee bond sale would be the biggest ever for Reliance Industries and the conglomerate's first foray into the domestic bond market since 2020, as per the report.

Today, the share price of Reliance Industries was up 0.57% at Rs 2309.85 per share.

Mukesh Ambani led Reliance Industries is an Oil-to-telecom conglomerate. The diversified conglomerate has an interest in the oil & gas, telecom, and retail sectors.

The company has felt the need for a fresh round of fundraising given RIL's strategic diversification into consumer-facing businesses. This year, the company's retail unit brought strategic investors such as Qatar Investment Authority and KKR & Co. to the business.

According to a Reuters report, the conglomerate had raised $4 billion in US dollar bonds last year. The fundraising activity was India's largest-ever foreign currency bond deal. RIL raised $1.5 billion in a 10-year tranche, $1.75 billion in a 30-year, and $750 million in a 40-year deal, said the news agency based on RIL's term sheet. Reliance Industries is India's largest company in terms of market value.

Last month, the company reported its financial results for the quarter ending September 2023 where the oil-to-telecom saw a 29.7% growth in net profit at Rs 19,878 crore. During the quarter, RIL's Revenue from the Oil and gas segment increased significantly with incremental production of gas and condensate from the MJ field. According to the company, the resilient performance of the O2C segment despite volatility in energy markets was led by strong growth in fuel demand in a supply-constrained market.