Moody’s Investors Service on Monday said Reliance Industries’ Rs 53,100 crore rights issue is credit positive as earnings will decline because of economic shutdowns.
Last week, Reliance announced it will raise Rs 53,100 crore through a rights equity offering.
Also, the company announced an investment of Rs 5,656 crore by Silver Late in Jio Platforms, the digital services business of RIL.
“This is in line with the company’s target to reduce its net debt to zero by March 31, 2021. The proceeds from the rights issue will reduce RIL’s net debt by about USD 7.8 billion and is credit positive,” Moody’s said in a note.
Along with the previously announced asset sales to Facebook, Inc and BP Plc, RIL expects to generate net proceeds of Rs 1.1 lakh crore, which will reduce its net debt by the same amount.
