In a major revamp of its investment portfolio, Reliance Industries ltd has sold off its holdings in four banks, HDFC Bank, Axis Bank, Canara Bank and PNB, but has tanked up its holdings in two others -- SBI and ICICI Bank.
Besides, Mukesh Ambani-led conglomerate has made fresh investments in shares of at least four public sector entities -- NMDC, NTPC, ONGC and Oil India, shows its latest annual report for the year 2012-13.
In its non-equity portfolio, RIl made fresh investments totalling Rs300 crore in the debentures of Tata Sons ltd, parked an amount totalling Rs791 crore in three schemes of Anil Ambani-led Reliance Group’s mutual fund company and liquidated an investment of Rs15,720 crore in certificate of deposits with scheduled banks.
Besides, the cash-rich RIl has retained its long-term investments in companies like EIH ltd (Rs1,433 crore), HFCl (Rs57 crore) and HDFC ltd (Rs949 crore).
In ICICI Bank, the company’s shareholding grew from Rs79 crore to Rs174 crore, while the same in State Bank of India rose from Rs112 crore to Rs199 crore.
On the other hand, RIl sold off its holdings in HDFC Bank, Axis Bank, Canara Bank and Punjab National Bank. Incidentally, RIl is itself rumoured to be interested in applying for a banking licence, but there has been no official word on this as yet.
While it had a total outstanding debt of over Rs72,000 crore as on March 31, 2013, RIl is a debt-free company on a net basis. Its cash and cash equivalents as on that date amounted to Rs82,975 crore.
The company has been traditionally managing its short term resources by placing them in very liquid, highly rated securities such as bank fixed deposits, Government securities and bonds and money market mutual funds.
However, latest changes in its portfolio also indicate towards an increased focus towards fixed maturity plans of mutual funds, listed shares and corporate bonds.
Among fresh long-term investments in listed shares, RIl has disclosed holdings worth Rs142 crore in NMDC, Rs134 crore in NTPC, Rs42 crore in Oil India and Rs136 crore in ONGC.
Besides, the company has also put in additional amounts of Rs106 crore and Rs58 crore in the shares of NTPC and ONGC as part of its ‘current investment’ portfolio. Among unlisted shares, RIl has invested in the NSE,Shinano Retail and Terra Power llC, among others.
Its total long-term investment in listed shares rose to Rs3,285 crore as on March 31, 2013, from Rs2,736 crore a year ago. Including the non-equity investments, the total long-term investment portfolio was at Rs9,482 crore at the end of the last fiscal.
In addition, its current or short-term investments stood at Rs28,869 crore as on March 31, 2013, as against Rs27,173 crore a year ago.