C O R P O R AT E F I N A N C E - F I N M 5 4 2

ASSIGMENT
ON RELIANCE
INDUSTRY
MASTER OF BUSINESS ADMINISTRATION
(TALENTEDGE)
M EE T OU R T E A M

Mratyunjay Raj Purohit Himanshi Sisodiya Mayank Malhotra

12102956 12104658 12103432

RELIANCE INDUSTRIES

Reliance Industries is an Indian multinational conglomerate company,

headquartered in Mumbai, India. Reliance's diverse businesses include
energy, petrochemicals, natural gas, retail, telecommunications, mass
media, and textiles. It is also the eighth largest employer in India with over
2,36,000 employees. The company is ranked 155th on the Fortune Global
500 list of the world's biggest corporations as of 2021.

Reliance is one of the most profitable companies in India.

• Reliance will spend • The Reliance Industries Ltd is spending Rs.43,000 crore in
Rs 43,000 Crore to order to buy telecom company in the country in order to
diversify in the foreign markets.
buy Telecom
Company in this • Reliance is looking forward to acquire the controlling stake
in the largest telecom operator of the Netherlands as the
Country telecom industries is one of the most growing industries in
the present time.

• This deal of $5.9 billion has been under evaluation since the
past three months and is being personally managed by
Akash Ambani who leads reliance Jio.

• And the history and substantial stakes of T-mobiles also

shows a good record being the second largest wireless
carrier in the country with 104.8 million subscribers.
2. India’s Reliance
• Mukesh Ambani’s reliance retail is looking forward to make an
Retail to investment decision of the fund raised by various sources of
Launch Premium finance and the sector will be entering into the premium
department store segment by early next year.
Department
Store Chain. • Reliance’s new department store format will reportedly be
positioned between its Reliance Trends mass market department
store chain and The White Crow.

• Overall, the retail market is expected to grow from $795

billion in 2017 to $1.2 trillion by 2021.

• Therefore, the overall investment done by the reliance retail may

turn out great wonders for the company as there has been a great
growth in the past and a good growth is expected in the future as
well.
3. Reliance Industries arm acquires 2.28 crore equity
shares of Strand Life Sciences Pvt Ltd
• The company is expected to make another
Rs.160 crore investment by March 23 which
will in total translate the investment to 80.3%
of equity shares in Strand life science on a
fully diluted basis.
• Strand is a pioneer of genomic testing in India
with bioinformatics software and clinical
research solution to healthcare providers
• The major initiative behind this investment is to
foster affordable access to world-class
technology and an innovation led healthcare
ecosystem in India.
• This Direct investment of funds in the healthcare
system might turn out a good investment strategy
for reliance industries Ltd as well as for the
Indian economy as a whole
 • Another investment initiative taken by the reliance
4. Reliance industries Ltd in order to invest in its funds in a proper
Capital arm manner.
invests $1 million • This Time reliance industries have invested dollar 1
in startup Billion million in billion loans which is a start up financial
loans Financial service company.

Service • This is the second major start-up investment after Paytm

by reliance capital.

• This Investment has been made in line with the strategy

to expand its consumer lending business across platforms
and it is also expected to facilitate loans of around
Rs.2000 crore across multiple products and lenders in the
next three years.
5. Industries' foreign currency IDR reflects robust
external debt service ratio: Fitch
• Fitch Ratings Inc. is an American credit rating
• Furthermore, Fitch rating expects Reliance
agency said that Reliance Industries will upgrade
Industries in decrease of financial leverage to
its foreign currency issuer from default rating
continue and support by growing cash
international depository receipt (IDR) to Better
generation and receipt of the balance of funds
Business Bureau (BBB) in June.
and capital expenses below historical levels

• It is also said that India's country ceiling of BBB

• This is despite Reliance Industries
minus reflects expectation that Reliance hard-
announcement that they will invest Rs 75,000
currency external debt-service ratio will remain
crore in new energy business over the next three
above 1.0x over the next 12 months.
years.
 Reliance Power, Reliance Infra and other promoters have decided to
6. Anil Ambani say increase their stake by transforming ₹1,325 crore ICD.

Reliance Infra will • Reliance Power reduced its debt by nearly ₹3,100 crore in Financial
Year 2021. The proceeds will be used to repay the debts of Reliance
Limited’s Infrastructure and the company will become debt-free, said
become debt free. by Ambani.

• He also said that the demand for electricity, which reduced due to
the lockdown, has nearly bounced back to normal levels and that
Relianc e Limited’s Infrastructure will receive ₹7,100 crore from the
Delhi Metro Rail Corporation (DMRC) after a recent Supreme Court
judgement.

Further, agreement claims worth ₹15,000 crore are pending before

various forums. The preferential issue of over ₹550 crore comprising
in of 8.88 crore warrants of ₹62 each, changeable into equity, has
enlarged promoter holding to 22.06%
 At BSE stock Price of RIL jumped 3.83% to its all-time high of Rs
2,479.85. Market ranking jumped to 15 lakh crore first company to do so.
7. Reliance
RIL all set to invest 160crore in Reliance Strategic Business Ventures Ltd (RSBVL) part

Industries
•

of reliance digital health services by march 2022.

shares • At National Stock Exchange, they gained 3.83% Reached to Rs 2,480Rs per stock.

continue to • Reliance said that the total investment will translate into about 80.3% of equity share
capital in Strand on a fully diluted basis. Strand life sciences was incorporated in India

rally; jump on October 6, 2000.

nearly 4% • Shares of Reliance continued to move higher on Monday and obtained nearly 4% after
the company its subsidiary has received majority stake in genomic testing firm Strand
Life Sciences Pvt Ltd for Rs 393 crore.
8. Japan's Sumitomo to buy 2.77% stake in Reliance
Capital for Rs 371 crore
• Nippon Life also gave indication that it was willing to hike its stake in Reliance Life as well once
they got regulations permit.

• The investment is being made at Rs. 530 per share, representing a premium of over 11% to the stock
price of applicable date of Reliance Capital.

• Nippon Life also holds 26% stake in Reliance Life Insurance Company, which they had bought for Rs
3,062 crore.

• Financial services major Reliance Capital last month reported 20% rise in its second quarter net profit
at Rs 217 crore, helped by strong growth in mutual fund, commercial finance and general insurance
businesses

• It has six primary business segments which include: Retail Financial Services Business, Wholesale
Financial Services Business, Stock Transfer Agency Services Business, Real Estate Business, Fiduciary
Services Business and Global Markets Business.
• Reliance Capital has once again failed to make interest payment for
nonconvertible debentures (NCDs) due.

• The lender had taken a loan of Rs 524 crore from HDFC and Rs 101 crore from Axis Bank. 9. Reliance
Capital
The troubled company has also missed 12 instalments of HDFC and Axis Bank from January
2020 to February 2021.

• Reliance Capital has been missing monthly interest payment of Rs 4.77 crore to HDFC and again
defaults on
Rs 71 lakh to Axis Bank.

• The net loss of Reliance Capital had broadened to Rs 4,018 crore in the December quarter
(Q3FY21), payment to
• Reliance Capital had earlier invited expressions of interest (EOI) for its key assets.
However, the total financial indebtedness of Reliance Capital remained at Rs 20,643 crore as
bondholders
on February 28, 2021
•Reliance industries group run by Anil Ambani is currently

Reliance Capital
having a debt of Rs.18,000 crore.

claims stake
• There is a Hope of substantial reduction in the amount of debt by 50 to 60% by
the means of monetization of 43% stake in reliance Nippon and 49% stake in

sale to have
reliance General insurance along with non-core investment.

debt by around
• After this reduction in the amount of debt raised by the company there will be
an impact on the debt-to-equity ratio of the company in a positive manner.

• The reduction in the debt will therefore provide the company with higher Rs 12,000 crore
solvency, higher profit margins and lower breakeven point.
over next three
• Beneficial for the potential investors and Existing investors of the company
does making a good market image of the reliance industries Ltd to four months
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