Mumbai: Reliance Industries , the country’s largest company by market value, has put a chunk of the money it received from stake sales in its subsidiary and the rights issue, into debt mutual funds, said four people in the know. In June, the company’s Rs53,125-crore rights issue sailed through. Reliance chairman Mukesh Ambani claimed the company has become net debt positive after the fund-raising exercise.Two senior industry officials said Reliance has been investing in various debt schemes over the past couple of months. Earlier, the major part of the money was put into schemes of the top seven mutual funds. They are usually risk averse and would deploy in low-duration products and AAArated companies,” said Kaustubh Belapurkar, director (fund research), Morningstar India.One of the bets that Reliance has taken is to invest in corporate bond funds with higher yield-to-maturity (YTM)—a measure of returns on bonds’ maturity, said one mutual fund official in the know.

Source: Economic Times July 18, 2020 04:07 UTC