FROM NET DEBT FREE TO DEBT EFFICIENT: A CASE STUDY ON RELIANCE INDUSTRIES LIMITED

Abstract

The case study on Reliance Industries Limited (RIL) enquires into the strategic financial tactics undertaken by the company to transform itself from being net debt-free to a debt-efficient entity. In January 2022, RIL raised $4 billion through foreign currency bonds. This was a significant step in reducing its cost of capital. This paper examines the aggressive leveraging phase of Reliance Industries Limited between 2012 and 2019, the subsequent steps undertaken by the company to achieve net zero debt by March 2021, and the implications of the USD bond issuance in 2022. The study provides valuable insights into RIL's approach to capital structure decisions and its impact on shareholder value creation.