Mukesh Ambani's strategy to become debt-free in 2020.
                     Mukesh Ambani's strategy to 
become debt-free in 2020
Zero-debt RIL
• Reliance Industries Limited (RIL) boss Mukesh 
Ambani has been a busy man ever since he 
announced plans to make RIL a “zero-debt” 
company by March 2021. The developments over 
the past few weeks shows that Ambani’s company is 
racing towards achieving the same by the end of this 
calendar year.
Source: Google Images
A challenge
• Though coronavirus pandemic has made the zero-debt 
plan a steeper challenge, Ambani seems undeterred. 
American investment firm General Atlantic was the 
latest to invest in RIL’s wholly-owned subsidiary, Jio 
Platforms, which is the digital wing of Reliance’s 
businesses.
Source: Google Images
Jio Platforms
• Jio Platforms has raised RTs 67,194.75 crores from 
leading technology investors including Facebook, 
Silver Lake, Vista Equity Partners and General 
Atlantic in less than four weeks, which is one of the 
most valuable companies in India.
Source: Google Images
Rights issue
• Besides that, the mega Rs 53,125 crore rights issue 
is also part of the plan to make RIL a zero-debt 
company by the deadline. The rights issue will be 
open for subscription on May 20 and it will close on 
June 3.
Source: Google Images
More investment 
expected
• As part of the rights issue plan, Reliance shareholders 
will be able to buy a new share for 15 currently held 
at Rs 1,257 each. It may be noted that this is India’s 
first rights issue by a firm in nearly three decades and 
shows that Reliance Is aggressively exploring options 
to become a zero-debt company.
Source: Google Images
Hiving off oil 
companies
• The rights issue and the Rs 7,000 crore investment by 
BP in a fuel retailing joint venture will help the 
company achieve its target. Another plan that is 
expected to help RIL become debt-free is the 20 per 
cent stake sale in its oil-to-chemical (O2C) business to 
Saudi Aramco.
Source: Google Images
Challenge from 
government
• Modi government has petitioned a court to halt a 
proposed stake sale by Reliance Industries to Saudi 
Aramco. In addition, the conglomerate is also facing 
unfriendly tax proposals that could hit its businesses.
Source: Google Images
Why become debt-
free?
• Reliance had freed its arms in matters of investment. 
It had pumped in Rs 5.4 lakh crore into various 
businesses and spent a bulk of it on Reliance Jio, it 
was after Reliance’s net debt had crossed over three 
lakh crore that Ambani announced plans to make RIL 
a zero-debt company.
Source: Google Images
Masterplan
• Ambani’s Reliance is looking for more potential 
investors, who will not only help in bringing down the 
company’s debt but also offer technological advances 
that can be integrated for better monetization
Source: Google Images