RIL’s net debt will drop with rights issue, sale of Jio stake: Morgan Stanley
The monetization of assets in Jio Platforms along with the $7 billion rights issue is expected to more than halve Reliance Industries Limited’s (RIL) net debt, according to a Morgan Stanley report.
He said multiple catalysts are in play with faster than expected deleveraging, improving demand and margin outlooks in refining and chemicals, a top quartile earnings CAGR of 23% on F20-23 and the scanning, supporting multiples.
Reliance Industries today announced a $252 million investment by Intel Capital for a 0.39% stake in Jio Platforms.
This investment values Jio Platforms at $68.8 billion, in line with the recently announced stake sale.
ALSO READ: Intel Capital invests Rs 1,894 crore for 0.39% stake in Jio Platforms
Intel Capital is the investment arm of Intel Corporation. Since 1991, Intel Capital has invested $12.9 billion in more than 1,582 companies worldwide. RIL pointed out that he plans to work with Intel on new technologies.
To date, RIL has sold 25.1% of Jio Platforms, equivalent to raising $15.7 billion at current exchange rates. “We believe the monetization of assets in Jio Platforms along with the $7 billion rights issue should reduce RIL’s net debt by more than half,” Morgan Stanley said in the report.
Reliance Industries Limited (RIL) and Jio Platforms Limited announced on Friday that Intel Capital will invest Rs 1,894.50 crore in Jio Platforms at a net worth of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 trillion. .
Intel Capital’s investment will result in a 0.39% stake in Jio Platforms on a fully diluted basis.
Intel Capital joins the list of renowned companies that have recently invested in Jio platforms, bringing the total amount of investment to Rs 1.17 trillion.