Reliance May Split With The IPOs Of Jio, Retail Business:
To begin with, the Reliance may look to relive the additional shares of its developing telecom arm Jio and retail business sectors. As per the Bernstein Research announcement, the company decided to unlock shares when it has turned into debt-free.
The Reliance Industries market capital raised to USD 22.3 billion due to the sale of 24.70% Jio stake and USD 7 billion equity raise. Due to the sell-down of 24.70% along with the rights issues RIL effectively debt-free.
According to the expert’s analysis, the company will unlock the shareholder value of Jio and retail business in the next 3 to 4 years. As per the company’s balance sheet, the RIL has continuous growth in its financial position. Also, the company’s net debt will decline from 0.51x in FY20 to 0.06x in FY21.
Furthermore, the company increased its target amount from Rs. 1,720 to Rs. 1,870 per equity share. According to the sources, until now the company shares traded with a turnover of Rs. 9,95,265.00 cr.
On 31st March 2020, the company announced its consolidated sales worth Rs. 1,36,240.00 cr. Comparatively, the company sales declined by 11.06% from its last quarter sales of Rs. 1,53,179.00 cr. Also, its sales declined by 2.4% from last year’s sales of Rs. 1,39,590.00 cr.
Moreover, the net profit after tax Rs. 6,348.00 cr raised by 38.74% from last year the same quarter. By the ending of March 2020, the company promoters held 48.87% from its stake, FIIs held a 23.48% stake and DIIs held a 5.29% stake.