Shares for Reliance rises and market cap crosses 12 trillion

Shares for Reliance rises and market cap crosses 12 trillion

Having increased by 1.6 percent from the closing on Friday, the shares for Reliance Industries hit an all-time high of INR 1908 on the BSE. This has pushed its market capitalization to 12.09 trillion. This is a record for Indian companies. Ever since mid-March, the stock has risen by over 120%. 

This week, the company will also hold its annual general meeting. 

The investment arm of Qualcomm Inc., Qualcomm Ventures, also stated that they will invest 730 crores for a 0.15 percent stake in Jio. They will then become the 12th entity to invest in the digital services of RIL in a period of three months. With this, the company has sold 25.24 percent of its stake in Jio Platforms to General Atlantic, Facebook, KKR, TPG, Silver Lake, L Catterton, Abu Dhabi Investment Authority, Mubadala Investment Company, Vista Equity Partners, and Public Investment Fund, Intel Capital and Qualcomm Ventures. This has raised Rs118,318.45 crore for the company. 

RIL also raised INR 53,124 crores through a rights issue. As of 31 March, its net debt was INR 1.61 trillion. With these investments, the company will now become debt-free. 

Post COVID-19, there will be some strategic direction. Brokerage firm Morgan Stanley also expects further details on asset monetization to drive stock performance. Investors are also looking at challenged beyond those of FY21 Q1. 

Analysts are also waiting for some clarity on the Future Retail deal. Many reports indicate that there are negotiations between RIL and Future Group for a potential acquiring of Future Retail, Future Supply Chain Solutions, and Future Lifestyle Fashions. These negotiations have reached a decisive phase. 

There is some progress also expected on other initiatives like Home Broadband, Jio First Day First Show, online grocery, and new commerce initiatives.