RIL board approves fundraising of Rs 25,000 crore via NCDs

Reliance Industries Limited (RIL) informed that its board of directors has approved a proposal to raise funds through the issuance of non-convertible debentures (NCDs) up to Rs 25,000 crore.

In a board meeting held on Thursday, RIL announced that the funds would be raised via NCDs for an amount up to Rs 25,000 crore, in tranches from time to time, on a private placement basis, the company said in a statement to BSE.

Meanwhile, the company had informed on March 31 that a board meeting will be held on April 2 for discussing fundraising issue. Nevertheless, its plan to raise money via NCDs has come at a time when the company was expected to reduce debt to zero by 2021. However, the purpose of fundraising has not been disclosed yet but it is being presumed that it may be due to the current pandemic situation where the entire economy is facing cash crunch among other challenges.

At 1.32 pm on Friday, the stock of Reliance Industries Ltd is trading at Rs 1,068.00, down by 1.17 per cent against its previous close of Rs 1,080.65 on BSE.