RIL Board Approves Plan To Raise Rs 25,000 Crore

Reliance Industries Ltd.'s board has approved raising funds totalling up to Rs 25,000 crore through redeemable non-convertible debentures.

The company's board approved raising of funds through issuance of listed, secured or unsecured, redeemable non-convertible debentures up to Rs 25,000 crore, in one or more tranches, on a private placement basis, according to an exchange filing on Friday.

RIL's margin contracted during the three months ended March, weighed down by the performance in oil & gas and retail segments.

The oil-to-telecom conglomerate reported a profit of Rs 19,407 crore, an increase of 4.7% from the preceding quarter, according to its notification to the exchanges. Its operating margin contracted by 140 basis points on a sequential basis to 16.8%.

The company’s consolidated bottom line rose 9% quarter-on-quarter to Rs 2.61 lakh crore.

Shares of RIL closed 0.09% lower at Rs 1,300.40 apiece, compared to the 0.86% decline at the benchmark NSE Nifty 50. It has fallen 10.93% in the last 12 months and risen 6.99% on a year-to-date basis.

Thirty-five out of the 38 analysts tracking the company have a 'buy' rating on the stock, and three suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 17.8%.