RIL-Aramco deal: A win-win for Reliance Industries

Balance-sheet deleveraging, strengthening crude oil supplies, and reduced dependence on the hydrocarbon business bode well for RIL.
BL Research Bureau

Reliance Industries (RIL) decision to sell a 20 per cent stake in its refining and petrochemicals business to Saudi Aramco at an enterprise value of $75 billion has many positives for the Indian behemoth.

One, it could help the company pare its debt, that has risen significantly in recent years. The deal should fetch RIL about $15 billion; this should help the company deleverage significantly and also aid in its expansion plans across businesses. A recent Credit Suisse report had raised some concerns about RIL’s debt levels.