Henry Kravis, co-founder and co-CEO of KKR, believes that few companies
have the potential to transform a country’s digital ecosystem the way Jio Platforms is doing in India, and potentially worldwide.
The investments are expected to help RIL reduce its debt and expand its digital offerings. RIL had a gross debt of Rs 3.36 trillion at the end of the March quarter, and a net debt of Rs 1.61 trillion. The company has indicated that it will become net debt-free by December this year, ahead of its earlier target of FY21-end.
So far the company has sold 17.12 per cent, but if it sells up to 20 per cent, it can raise just under Rs 92,000 crore.
It also has plans to raise Rs 7,000 crore from UK’s BP for its fuel retail business and Rs 25,000 crore from Brookfield for tower assets (Tower InvIT). The company indicated that due diligence on its 20 per cent stake sale in oil-to-chemical assets to Aramco was ongoing. Analysts expect the $15 billion deal to close by December.
Moody’s Investor Service in a note highlighted that the successful completion of the transactions would help alleviate the negative impact of lower earnings caused by disruptions from the coronavirus outbreak.