Disclosure Document For private circulation only CIN - L17110MH1973PLC019786 Registered Office: 3rd Floor, Maker Chambers IV, 222, Nariman Point, Mumbai – 400 021 Compliance Officers: K. Sethuraman and Savithri Parekh Tel: +91-22-3555 5000; Fax: +91-22-2204 2268; E-mail: [email protected]; Website: www.ril.com DISCLOSURE DOCUMENT DATED APRIL 13, 2020 Disclosure Document for issue by way of private placement by Reliance Industries Limited (“RIL” or the “Company” or the “Issuer”) of (i) 30,000 unsecured redeemable fixed coupon, non-convertible debentures - PPD Series K1 of the face value of Rs. 10,00,000 each, with marketable lot of one, for cash aggregating to Rs. 3,000 Crore with an option to retain oversubscription up to Rs. 1,500 Crore aggregating to Rs. 4,500 Crore (“Fixed Rate Debentures” or “PPD Series K1 Debentures”); and (ii) 35,000 unsecured redeemable floating coupon, non-convertible debentures - PPD Series K2 of the face value of Rs. 10,00,000 each, with marketable lot of one, for cash aggregating to Rs.3,500 Crore with an option to retain oversubscription up to Rs. 1,000 Crore aggregating to Rs. 4,500 Crore (“Floating Rate Debentures” or “PPD Series K2 Debentures”). The Fixed Rate Debentures and Floating Rate Debentures shall collectively be referred to as “Debentures” and the issuance of Debentures shall collectively be referred to as “Issue”. The Issue would be under the electronic book mechanism for issuance of debt securities on private placement basis as per the Securities and Exchange Board of India (“SEBI”) circular no. SEBI/HO/DDHS/CIR/P/2018/122 dated August 16, 2018 and any amendments thereto (“SEBI EBP Circular”) read with the “Updated Operational Guidelines for issuance of Securities on Private Placement basis through an Electronic Book Mechanism” issued by BSE vide their Notice No. 20180928-24 dated September 28, 2018 and any amendments thereto (“BSE EBP Guidelines”, together with the SEBI EBP Circular referred to as the “Operational Guidelines”). The Company intends to use the BSE BOND-EBP Platform (as defined in Section 1 titled “Definitions”) for this Issue. THIS DISCLOSURE DOCUMENT IS BEING UPLOADED ON THE BSE BOND-EBP PLATFORM TO COMPLY WITH THE OPERATIONAL GUIDELINES AND AN OFFER WILL BE MADE BY ISSUE OF THE PRIVATE PLACEMENT OFFER CUM APPLICATION LETTER (“PPOAL”) AFTER COMPLETION OF THE BIDDING PROCESS ON ISSUE / BID CLOSING DATE TO SUCCESSFUL BIDDERS IN ACCORDANCE WITH THE PROVISIONS OF THE COMPANIES ACT, 2013, AS AMENDED (THE “COMPANIES ACT”), AND RULES ISSUED THEREUNDER. This document provides disclosures in accordance with the SEBI (Issue and Listing of Debt Securities) Regulations, 2008 as amended (the “SEBI ILDS Regulations”) and provides additional disclosures in Section 4 (Additional Disclosures). The Eligible Participants (as defined in Section 1 titled “Definitions”) must evaluate the disclosures in the Disclosure Document for taking their investment decision. GENERAL RISKS Investment in debt and debt related securities involve a degree of risk and Eligible Participants should not invest any funds in the debt instrument, unless they understand the terms and conditions of the Issue, the risk factors set out in Annexure C (Management’s Perception of Risk Factors) and can afford to take the risks attached to such investments. For taking an investment decision, Eligible Participants must rely on their own examination of the Company and the Issue including the risks involved. The Issue of the Debentures have not been recommended or approved by SEBI nor does SEBI guarantee the accuracy or adequacy of this document. Eligible Participants are advised to take an informed decision and consult their tax, legal, financial and other advisers, regarding the suitability of the Debentures in the light of their particular financial circumstances, investment objectives and risk profile. CREDIT RATING The Debentures have been rated “CRISIL AAA/ Stable” (“CRISIL TRIPLE A rating with stable outlook”) by CRISIL Limited and “CARE AAA/ Stable” (“CARE TRIPLE A rating with stable outlook”) by CARE Ratings Limited (CRISIL Limited and CARE Ratings Limited are hereinafter collectively referred to as the “Credit Rating Agencies”). This indicates “highest degree of safety” with respect to timely payment of interest and principal on the Debentures. The ratings are not a recommendation to buy, sell or hold the Debentures and Eligible Participants should take their own decision. The ratings may be subject to suspension, revision or withdrawal at any time by the assigning Credit Rating Agencies. Each of the Credit Rating Agencies have a right to revise, suspend or withdraw the rating at any time on the basis of factors such as new information or unavailability of information or other circumstances which the Credit Rating Agencies believe may have an impact on its rating. Please refer to Annexures L and M to this Disclosure Document for rating letters by the Credit Rating Agencies. LISTING The Debentures are proposed to be separately listed on Negotiated Trade Reporting Platform under new debt market of the National Stock Exchange of India Limited (“NSE”) and the Wholesale Debt Market segment BSE Limited (“BSE”). NSE and BSE shall be collectively referred to as the “Stock Exchanges”. BSE shall be the designated stock exchange for the Issue. The Issuer shall comply with the requirements of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the “SEBI LODR Regulations”) to the extent applicable to it on a continuous basis. NSE has given its in-principle listing approval for the Debentures proposed to be offered through this Disclosure Document vide its letter dated April 13, 2020 and BSE has given its in-principle listing approval for the Debentures proposed to be offered through this Disclosure Document vide its letter dated April 13, 2020. Please refer to Annexures N and O to this Disclosure Document for the in-principle listing approvals. ISSUE PROGRAMME ISSUE OPENING DATE ISSUE CLOSING DATE PAY IN DATE DEEMED DATE OF ALLOTMENT April 16, 2020 April 16, 2020 April 17, 2020 April 17, 2020 The Issuer reserves the right to change the Issue Programme including the Deemed Date of Allotment (as defined hereinafter) at its sole discretion in accordance with the timelines specified in the Operational Guidelines, without giving any reasons or prior notice. The Issue will be open for bidding as per bidding window that would be communicated through the BSE BOND-EBP Platform. The Issue shall be subject to the provisions of the Companies Act, the rules notified thereunder SEBI ILDS Regulations, the Memorandum and Articles of Association of the Issuer, the terms and conditions of the Disclosure Document filed with the Stock Exchanges and other documents in relation to the Issue. DEBENTURE TRUSTEE REGISTRAR & TRANSFER AGENT Axis Trustee Services Limited Link Intime India Private Limited CIN: U74999MH2008PLC182264 nd CIN: U67190MH1999PTC118368 The Ruby, 2 Floor, SW C-101, 247 Park, L B S Marg, 29, Senapati Bapat Marg, Dadar Vikhroli West, Mumbai 400 083 West Mumbai – 400 028 Tel: +91-22-4918 6200 Tel: 91-22–6230 0451 Fax: +91-22-4918 6060 Fax: +91-22-6230 0700 Website Address: www.linkintime.co.in Website Address: www.axistrustee.com Email: [email protected] E-mail: [email protected] Strictly Confidential Disclosure Document For private circulation only TABLE OF CONTENTS DISCLAIMER .................................................................................................................................. 3 1. DEFINITIONS AND ABBREVIATIONS ............................................................................. 8 2. ISSUER INFORMATION .................................................................................................. 13 2.1 About the Issuer ............................................................................................................. 13 2.2 Brief summary of Business/ Activities of the Issuer and its line of Business ........ 16 2.2.1 Overview .......................................................................................................................... 16 2.2.2 Corporate Structure ....................................................................................................... 26 2.2.3 Key Operational and Financial Parameters for the last 3 Audited years ................. 31 2.2.4 Project cost and means of financing, in case of funding new projects ................... 33 2.2.5 Objects of the Issue ....................................................................................................... 33 2.3 Brief history of the Issuer since its incorporation ...................................................... 34 2.3.1 Details of Share Capital as on last quarter end i.e. December 31, 2019 .................. 34 2.3.2 Changes in Capital structure as on last quarter end, i.e. December 31, 2019 for the last 5 years* ..................................................................................................................... 34 2.3.3 Equity Share Capital History of the Company as on last quarter end i.e. December 31, 2019 for the last 5 Years .......................................................................................... 34 2.3.4 Details of any Acquisition or Amalgamation in the last 1 year ................................. 42 2.3.5 Details of any Reorganization or Reconstruction in the last 1 year ......................... 45 2.4 Details of the shareholding of the Company as on the