Mukesh Ambani, chairman of Reliance Industries, has announced India's largest-ever share sale, a £6bn rights issue that has drawn significant interest from British institutional investors. The move signals a strategic pivot for the conglomerate as it seeks to deleverage its balance sheet and fund expansion into green energy and digital services.
The rights issue, the biggest in Indian corporate history, will see Reliance offer shares at a 40% discount to their prevailing market price. Analysts at JP Morgan noted that the deal represents a rare opportunity for foreign investors to acquire a substantial stake in a company that commands a near-monopoly in India's telecoms and retail sectors.
UK pension funds and asset managers, including Legal & General and Schroders, are expected to participate. The London Stock Exchange has seen a surge in trading volumes of Reliance's global depositary receipts. A senior source at the Bank of England described the move as ‘a vote of confidence in India’s economic trajectory’.
Reliance’s debt stood at £21bn as of March 2021. The rights issue is designed to reduce this burden and free up capital for Jio Platforms, its digital subsidiary, which has attracted investments from Google and Facebook. The company also plans to ramp up its renewable energy business in line with India’s net-zero target by 2070.
However, some analysts caution that the scale of the offering could dilute existing shareholders. ‘The discount is generous but necessary to ensure full subscription,’ said Ravi Menon, an analyst at Standard Chartered. ‘The real test will be whether Reliance can deliver on its clean-energy promises.’
For UK investors, the deal offers exposure to India’s growth story at a time when China’s markets face regulatory headwinds. The rights issue closes on 30 June. Reliance shares rose 4% on the Bombay Stock Exchange on the news.
