Reliance Industries approved a framework to raise up to Rs 150 billion through private debt sales and reported a 40.6% rise in quarterly profit attributable to owners.
The board's Oct. 30 outcome filing authorized Reliance to issue listed, redeemable non-convertible debentures (NCDs), which may be secured or unsecured. The company can offer them in one or more private-placement tranches. At the same meeting, the board approved unaudited consolidated and standalone results for the quarter and half-year ended Sept. 30.
The approval sets a maximum for a possible offering; it does not announce a completed sale. The filing gives no final amount or issue date, and leaves pricing, maturity and the intended use of proceeds unspecified. It does not link the authorization to a particular funding need.
At Rs 25,548 crore, Reliance's quarterly earnings attributable to owners exceeded the year-earlier Rs 18,165 crore by 40.6%. A broader measure, combining profit after tax with the company's share of results from associates and joint ventures, reached Rs 29,550 crore, up 33.8% from Rs 22,092 crore. The Rs 25,548 crore figure is profit attributable to Reliance’s owners; the Rs 29,550 crore figure is group profit after tax, including its share of associates and joint ventures.
Revenue from operations was Rs 332,861 crore, compared with Rs 258,898 crore in the same quarter a year earlier, a 28.6% increase.
The results filing also disclosed about Rs 12,000 crore in listed, unsecured, redeemable NCDs placed privately during the September quarter. As of Sept. 30, outstanding NCDs totaled Rs 39,389 crore before prepaid finance charges and fair-value adjustments; Rs 20,000 crore of that amount was secured.
An Oct. 27 notice to Indian exchanges had put the fundraising proposal before the board alongside the results review. EconoTimes previously covered the debt proposal ahead of the meeting. The board filing provides no timetable for an offering or investor allocation.
