Shares of Reliance Industries Limited (RIL) rose over 1 percent in trade to an intraday high of Rs 1,453.65 on Wednesday. The surge comes after the oil-to-telecom conglomerate proposed a rights issue that could help the company continue with its debt reduction plans and also create a buffer for the financial impact from COVID-19.
Analysts at Economic Times believe that the right issue could help RIL achieve its zero-net-debt-by March-2021 target even if there is a delay in the proceeds from its announced deals with Saudi Aramco and Facebook.
Further, S&P Global Ratings affirmed 'BBB+' long-term issuer credit rating with a 'stable' outlook on RIL on Wednesday and a 'BBB+' long-term issue rating on the company's outstanding debt.
"We expect the operating performance of India-based Reliance Industries Ltd. (RIL) to remain resilient over the next two years, prominent domestic market position in the digital and retail segments," it said.
The company is scheduled to release its financial results for the fourth quarter of 2019-20 on Thursday.