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RIL AGM a Hit Among Investors, Market Cap Crosses Rs 8 Lakh Crore Day After Grand Announcements

Reliance Industries Limited (RIL) share reclaimed more than Rs 8 lakh crore capitalisation in trade on Tuesday, a day after chairman and managing director of RIL, Mukesh Ambani, announced a slew of measures that attracted both investors and consumers.

The mega conglomerate’s market capitalisation rose to Rs 8,12,671 crore in the first couple of hours of trade on Tuesday. MCap for RIL closed at Rs 7,36,602 crore in Friday trade. On July 23, 2019, the market capitalisation of the firm stood at Rs 8.06-lakh crore mark. Since then, the market capitalisation has remained below the Rs 8-lakh crore mark.

Reliance Industries share prices also rose 12.09 per cent to Rs 1,302.50 compared to previous close of Rs 1,162 on BSE.

Reliance Industries share price marked its biggest intraday jump on Tuesday since February 22, 2017 after the conglomerate held its 42nd Annual general meeting on Monday.

The stock rose from Rs 964 on July 5, 2018 when the RIL held its 41st AGM to Rs 1162 on Friday (August 9), translating into a rally of over 20%.

Ambani on Monday announced that Saudi Aramco will invest 20% in RIL’s oil-to-chemicals division at an enterprise value of $75 billion. The deal would be among India’s largest foreign direct investment (FDI) till date, besides being the biggest foreign investment in the history of RIL. The partnership will cover all of RIL’s refining and petrochemicals assets, including 51% of the petroleum retail joint venture.

In another significant announcement, Mukesh Ambani also stated that RIL will become a net zero-debt company within the next 18 months. The CMD also announced rewards for shareholders once the company becomes debt-free.

He said the deal with Aramaco, as well as the retail petroleum deal with BP, will be closed within this financial year. That would bring in Rs 1.15 lakh crore into RIL.

The RIL AGM also gave a launch date to the much-awaited Jio GigaFiber services. Ambani said the Jio GigaFiber will be available commercially starting September 5, 2019. He outlined that the service would be broad-ranging, including a 1 Gbps network speed, free landline connection, digital set-top box, ultra-high-definition entertainment, virtual content, interactive gaming and more smart home solutions.

Customers will have to pay between Rs 700 and Rs 10,000 per month depending on the plan. Users will be charged only for data and voice calls would be completely free from home to any Indian mobile or fixed-line operator.

Meanwhile, the large cap stock has been gaining for the last three days and rose 15.28% in the period. Reliance Industries share price opened with a gain of 6.71% at Rs 1240 on BSE on Tuesday.

Reliance Industries share price has gained 7.96% during the last one year and risen 14.33% since the beginning of this year. In comparison, the benchmark Sensex rose 3.75% since the beginning of this year and lost 0.60% during the last one year.

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Source: News18