RIL to raise Rs25,000 cr through private placement

Reliance Industries Ltd, the country's largest energy-to-retail conglomerate, plans to raise Rs25,000 crore through privately placed debentures in order to rapidly expand its telecom venture Reliance Jio and replace its existing high-cost debt.

The Mukesh Ambani-led firm sought shareholders' nod to issue redeemable non-convertible debentures (NCDs) on private placement. The shareholder resolution sought nod "to offer or invite subscriptions for secured unsecured redeemable nonconvertible debentures, in one or more series tranches, of an aggregate nominal value up to Rs25,000 crore on private placement."

In a stock exchange notice, RIL said the company's annual general meeting will be held on 21 July to consider the fund-raising.

Reliance Industries, which has already invested nearly Rs2,00,000 crore into its telecom venture Reliance Jio till date, plans to build a war chest for its aggressive expansion strategy in the telecom space.

The resolution sought to authorise the board of directors to "determine and consider proper and most beneficial to the company including, without limitation, as to when the said debentures are to be issued, the face value of debentures to be issued, the consideration for the issue, mode of payment, coupon rate, redemption period, utilisation of the issue proceeds and all matters connected".

Also, the board of directors are sought to be authorised "to do all acts and take all such steps as may be necessary, proper or expedient" for fund-raising.

Earlier, the company had raised Rs30,000 crore in 2015-16 through a rights issue in two parts.

In January this year, the firm said it would raise another Rs30,000 crore through a rights issue of optionally convertible preference shares to invest in Reliance Jio Infocomm.