RIL's bonds have surged to an almost 2-month high as the conglomerate signaled at realizing zero debt levels ahead of schedule as well as reiterated that Saudi Aramco deal talks are underway.
The company's bonds maturing in 2027 have risen by 0.4 cents on the dollar to 100.28 as per the prices piled by Bloomberg. Further the company's bonds due in 2025 also jumped to their highest since March 17.
Earlier while announcing its Q4 results, it approved its first rights issue in 29 years to raise a total of Rs. 531 billion rupees. And after the earlier buy out by Facebook in April, the world's leading US-based PE fund Silver Lake has invested in the company's Jio arm.The deal is said to be at a 15% premium to the previous Facebook deal.
These capital raising deals are part of the company's ambitious plan of being a debt free company by March 2021. Also, the company intends to lift investor confidence during the coronavirus crisis when oil prices decline has caused the company's petrochemical division to post 2-decade low profits for the March ended quarter of FY20. Also, the fall-out in oil prices has brought a risk to the Saudi Aramco deal through which the company aims to divest stake worth $15 billion stake in its oil-and-chemicals business.
Notably, while the stock of Reliance Industries in today's session has tumbled as much as 3% on global cues, it rallied a huge 32% in the April month.