The overall debt of NSE 500 companies, excluding finance and banks, rose 18 per cent, or Rs 4.88 lakh crore, to Rs 32.66 lakh crore in FY20.
Synopsis
Reliance Industries has reduced its gross debt by nearly Rs 1.21 lakh crore in FY21 to Rs 2.24 lakh crore, riding on a Rs 1.65 lakh crore aggregate fundraising through stake sales of its digital unit Jio Platforms and its retail arm Reliance Retail Ventures.
Mumbai: India Inc is using improved cash flows to cut debt for better ratings and equity valuations. This is despite widespread disruptions to business due to the Covid-19 pandemic.
Data compiled by ET show that 78 of 134 companies — excluding banks and finance firms — in the NSE 500 that have reported results so far reduced debt in the previous fiscal year.
Consequently, the aggregate debt of the 134 companies has fallen by Rs 2 lakh crore
