Good news is a precious commodity these days. So, when Reliance Industries Ltd (RIL) announced a $5.7 billion investment from Facebook, Inc.
in its digital subsidiary, Jio Platforms Ltd, investors were elated. RIL shares surged, adding to the gains made since end-March.
The shares are now just 9.8% lower than the highs in mid-January; about a month ago, it was down as much as 44%. It’s fair to say that much has changed in a month. “Post the Facebook deal, concerns on Reliance’s debt have allayed," said Amit Shah, head of research, BNP Paribas India. Click here to enlarge graphic But here’s the rub: despite the massive investment of ₹43,574 crore, the company’s plans of becoming net debt free by March 2021 could still be a tall order.