You are here: Home » PTI Stories » National » News
Business Standard

RIL soars 10%, m-cap surges by Rs 71,638 cr after a slew of pro-investor announcements

Press Trust of India  |  New Delhi 

Reliance Industries shares zoomed nearly 10 per cent on Tuesday, adding Rs 71,638 crore to the company's market valuation after the announcement of a host of investor-friendly proposals at its annual general meeting.

The oil-to-telecom giant saw its scrip jump 9.72 per cent to close at Rs 1,275 on the BSE. During the day, it climbed 12.09 per cent to Rs 1,302.50.

Reliance was the top gainer among the 30-frontline stocks on the key BSE index.

On the NSE, its shares gained 9.74 per cent to close at Rs 1,275.30 apiece.

Billionaire Mukesh Ambani-led firm posted its biggest one-day gain of 9.8 per cent in a decade in terms of stock price (the previous best was on January 14, 2009), the company said in a statement.

Riding on the massive rally, the company's market valuation advanced by Rs 71,637.78 crore to Rs 8,08,233.78 crore on the BSE.

On the volume front, 20.92 lakh shares traded on the BSE and over 4.79 crore units on the NSE during the day.

On market capitalisation, the company's statement said this is the highest absolute market cap gain in a single trading day.

"Reliance can further move towards Rs 1,300 soon. Going by the track record of the management and potential of the retail and digital market of India, Reliance's announcements will prompt a fresh rush of buying the stock that can take it to new highs in short-term and may pass Rs 2,000 levels in next 12 months," Romesh Tiwari, head of research, CapitalAim on the AGM of Reliance Industries Ltd, said.

Equity markets were closed on Monday on account of Bakri Id.

Reliance Industries chairman Mukesh Ambani on Monday announced plans to sell stakes in the firm's oil and chemicals business to Saudi oil giant Aramco and in fuel retail network to BP plc for Rs 1.15 lakh crore and said its telecom unit Jio will begin offering fibre-based broadband services from next month.

Saudi Aramco will buy a 20 per cent stake in the oil and chemicals business of Reliance including the 1.36 million barrels a day Jamnagar refining complex in Gujarat, for an enterprise value of USD 75 billion. BP will buy 49 per cent stake in the firm's 1,400 petrol pumps and aviation fuel selling facilities at 31 airports for another Rs 7,000 crore.

The twin deals along with deleveraging of telecom arm Jio's infrastructure assets will help Reliance become "a zero-net debt company within the next 18 months, that is by March 31, 2021", Ambani said at the company's annual general meeting (AGM).

Ambani also announced roll out of the fiber-based fixed-line broadband services from September 5, offering internet speed of at least 100 mbps and free voice calls for life for as low as Rs 700 per month.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, August 13 2019. 20:05 IST
RECOMMENDED FOR YOU