Rights issue, FB deal to address RIL’s debt concerns: Sharekhan

In Reliance oil and gas segment, the EBIT loss stands at Rs 485 crore, the retail segment revenues stand at Rs 2,062 crore and digital revenue stands at Rs 4,104 crore. The exploration & production (E&P) segment has been reeling under pressure due to lower gas and oil prices. There is pain and loss leading to negative EBIT. So, it was important to look at GRM and petchem EBIT margins. Rs 53,000 crore is coming from the rights issue; Rs 43,000-44,000 crore is coming in from the Facebook deal and another Rs 7,000 crore is coming in from the BP deal. Do you think the big overhang of Rs 1.5 lakh crore of net debt is getting addressed now?Initially they were targeting almost this much amount from the Aramco deal. So, this would address the concern of high debt and will help in balance sheet deleveraging which has been seen as the key catalyst for the stock if the company is to achieve its target of zero net debt by March 2021.

from Economic Times https://ift.tt/2VSbsSv