InvestorQ : Why is Reliance opting out of the stake sale to Saudi Aramco in its oil and chemicals business?
Katherine Gonsalves made post

Why is Reliance opting out of the stake sale to Saudi Aramco in its oil and chemicals business?

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rhea Babu answered.
2 weeks ago
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More than 2 years and several rounds of deliberations later, Reliance has decided not to sell 20% stake in the oil to chemicals business to Saudi Aramco for $15 billion. Both parties have mutually agreed to reassess the situation. While no immediate reason was given for the same, the decision apparently has stemmed from two specific factors and the way things have changed drastically in the last 2 years.

Back in 2019, Reliance needed big money to bankroll its aggressive zero net-debt plans. With the Aramco deal getting delayed, Reliance managed to become zero net-debt by monetizing its stake in Reliance Digital and Reliance Retail, apart from a record Rs.53,200 crore rights issue. Secondly, energy is now new energy and Bernstein estimated the EV of its new energy business at $70 billion. Surely, Reliance does not want to undervalue its asset.

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