RIL gains over 2% on IL&FS stake buy reports

Mukesh Ambani-led Reliance Industries surged by over 2% in early trade on the BSE today amid reports that the company may acquire the 23.87% stake of Japan's Orix Corporation's in Infrastructure Leasing and Finance Company (IL&FS) for $1.2 billion

Bolstered by the media reports, shares of the country's most valued firm rose by 2.07% to an early high of Rs 986 apiece on the Bombay Stock Exchange.

Witnessing similar buying interest on the National Stock Exchange, RIL's scrip jumped by 2.43% to Rs 989.75 in the morning session.

According to the reports, if the deal materialises, it will make the Reliance group the second largest investor in IL&FS after Life Insurance Corporation of India (LIC) and will pave the way for its entry into the financial services business.

Last month, IL&FS had completed the purchase of a 45% stake in Reliance's Model Economic Township (MET), comprising 10,000 acres of land, in Jhajjar, Haryana.

The significant gain in shares of RIL, which carries the maximum weight on the BSE benchmark Sensex, supported the upsurge in the key index, which was quoting 98.53 points higher at 17,799.44 at 1020 hours.