Recently, Mukesh Ambani led Reliance Industries Limited’s (RIL) market capitalisation rose by Rs 2.4 lakh crore. The company has recently issued Rights Issue and has initiated an IPO (Initial Public Listing) of its Digital and Telecom company Jio through which it had attracted many big investors.
RIL has recently increased the tariff rates of Jio and its data consumption increased during lockdown induced work from the home requirement. Combining the effect of all these developments helped the company to witness the fastest recovery among Nifty50 stocks from March lows. It gained Rs 4,76,621.70 crore of value from its March lows.
In the first tranche of Jio stake sales, RIL got Rs 43,574 crore of investment from Facebook Inc. and within 6 weeks of listing, it raised Rs 92,202.15 crore through investments from many global investors including Silver Lake, Vista Equity Partners, General Atlantic and KKR and Co. Abu Dhabi based Mubadala became the latest investor who is going to invest Rs 9,093.60 crore in Jio, as per its announcement on Friday.
Due to high investor sentiments, RIL share price touched the highest value of Rs 1617.70 today on Nifty50 and its closing price went to Rs 1,580.60.
Angel Broking’s DVP Equity Strategist, Jyoti Roy said, “Investments by such marquee names in Jio platforms also helps increase our confidence in the company’s strategy to transform from a brick and mortar company into a digital play”.
She added, “RIL has built up a dominant position in both the telecom and retail business where it is the market leader. We believe that the telecom and retail business will be key growth drivers for the company over the next few years while the company’s foray into e-commerce through its JioMart platform will be a value creator for the shareholders in the long run”.
On Dalal Street, RIL maintained its position of highest valued company in market with a market capitalisation of more than Rs 10 lakh crore.