RIL shares jump over 6%; market valuation crosses Rs 11 trn mark

Shares of Reliance Industries on Friday jumped over 6 per cent after Mukesh Ambani announced that his oil-to-telecom conglomerate had become net debt-free.

Following stellar gains in its share price, the company's market valuation rose by Rs 65,477.03 crore to reach Rs 11,15,418.03 crore on the BSE. The company became the first Indian firm to achieve the milestone of crossing Rs 11 trillion market valuation mark.

The heavyweight stock zoomed 6.23 per cent to close at Rs 1,759.50 on the BSE. During the day, it soared 7.99 per cent to Rs 1,788.60 -- its all-time high.

On the NSE, it surged 6.47 per cent to settle at Rs 1,763.20.

"The bulls continued to dominate and helped the index to gain over one-and-a-half per cent. The surge was led by index heavyweight, Reliance Industries, which announced that it has become net debt-free," said Ajit Mishra, VP - Research, Religare Broking Ltd.

Earlier in the day, Ambani announced that Reliance Industries had become net debt-free after raising a record Rs 1.69 trillion from global investors and a rights issue in under two months.

Reliance raised Rs 1.15 trillion from global tech investors by selling a little less than a quarter of the firm's digital arm, Jio Platforms, and another Rs 53,124.20 crore through a rights issue in the past 58 days.

Taken together with last year's sale of 49 per cent stake in fuel retailing venture to BP Plc of UK for Rs 7,000 crore, the total fund raised is in excess of Rs 1.75 trillion, the company said.

Reliance had a net debt of Rs 1,61,035 crore as on March 31, 2020. "With these investments, RIL has become net debt-free," it said.

The 30-share BSE index settled 523.68 points, or 1.53 per cent, higher at 34,731.73 helped by stellar gains in RIL. So far this year, RIL shares have gained 16.20 per cent.