InvestorQ : Is it true that Reliance is planning to shelve its plan to sell a stake in Reliance O2C to Saudi Aramco?
Sam Eswaran made post

Is it true that Reliance is planning to shelve its plan to sell a stake in Reliance O2C to Saudi Aramco?

Moii Chavate answered.
10 months ago

One of the first indications came when Reliance Industries applied to the NCLT to withdraw their proposal to realign all its oil and chemical interests under a separate entity Reliance O2C Ltd. That separation is not happening now as the company will review its separation in the light of the recent plans to focus big time on clean and green energy as well as new focus areas like solar energy, hydrogen etc. For now, the separation is shelved.

As a logical step, RIL has also announced a recalibration of the proposed $15 billion deal to sell 20% stake in its oil refinery and petrochemical business to Saudi Aramco. The deal was first signed in 2019 but had got stuck up in 2020 due to COVID at which time Aramco was demanding a lower valuation. At that time, RIL had managed to raise funds by selling stakes in Reliance Digital and Reliance Retail. Recently, the stake sale talks had been revisited.

Now it has been mutually decided to reassess the deal in the light of Reliance making forays into new energy business by investing $10 billion in alternative energy. RIL has also signed up with a German manufacturer of photovoltaic solar wafers and has also signed a deal with a Danish manufacturer of hydrogen electrolysers. In the light of the broader expanse of Reliance Industries, this deal may look at new valuations and new contours.

RIL had recently announced plans to develop the Dhirubhai Ambani Green Energy Giga Complex at Jamnagar in Gujarat, comprising of 4 giga-factories for solar photovoltaic modules and electrolysers, among others. However, Reliance has underlined that Yasir Al Rumayyan would stay on the board of RIL due to a wider engagement. RIL had valued its O2C business at $75 billion, but that could multiply due to its green plans.