Mark to Market

26: Why Reliance Industries is on a fundraising spree

Episode Summary

Shares of Reliance Industries have appreciated by more than 60% from its lows in end March. A key reason for the optimism is Reliance’s deal with Facebook, which was announced last week. Facebook’s $5.7 billion investment in Reliance’s digital subsidiary, Jio Platforms Ltd is expected to offer some relief on Reliance’s debt front. Still, the company also said that its board will consider a rights issue. So why is Reliance raising the funds?

Episode Notes

Shares of Reliance Industries have appreciated by more than 60% from its lows in end March. A key reason for the optimism is Reliance’s deal with Facebook, which was announced last week. Facebook’s $5.7 billion investment in Reliance’s digital subsidiary, Jio Platforms Ltd is expected to offer some relief on Reliance’s debt front. Still, the company also said that its board will consider a rights issue. So why is Reliance raising the funds?