Reliance Industries became the first Indian company to cross $150 billion in market cap as its shares soared over 8% intra-day after it declared itself net debt-free on Friday, nearly nine months ahead of schedule.
“I have fulfilled my all of my promises to the shareholders by making the Reliance net debt-free much before to our original schedule of 31st March 2021,” as Ambani told in a statement. He ensured shareholders that in its ‘golden decade’, RIL would set even more ambitious growth goals and also achieve them. Ambani had told the energy-to-telecom conglomerate that was on the verge of a golden decade whereas it would literally reap the returns of the largest capacity expansion in its petrochemicals business and also the investments in Jio In 2017 as well.
The fund-raising included the country’s largest rights issue of ₹53,124.20 crores and a series of secondary stake sales in Jio Platforms to a clutch of foreign tech giants, such as Facebook, also private equity as well as sovereign wealth funds such as KKR, TPG and also Saudi Arabia’s Public Investment Fund.
Reliance Industries’s net debt stood at ₹161,035 crores as on March 31, and the funds raised through the rights issue and stake sales in Jio Platforms exceed that amount. Together with the stake sale to BP in the petro-retail joint venture, the total funds that raised are in excess of ₹1.75 lakh crore, as the company told.
On Friday, shares touched a one-year high of ₹1,788.60 that up almost of 8% from the previous close. Reliance Industries does share ended up 6.25% at around ₹1,759.
RIL’s market capitalization has been touched around ₹₹11.15 lakh crore, and also the gap with the company with the second-largest market cap as well, TCS, has widened to nearly around ₹3.5 lakh crore.
RIL became the 1st Indian company to across the market cap of around $150 billion, based upon Friday’s closing price. “With earnings unlikely to be a driver of the stock price that given muted refining, petchem margins, and also the critical news flow on the JPL that is Jio Platforms stake sale now behind us, we would ideally expect the stock to consolidate after the significant outperformance from the March low. We do maintain our ‘neutral’ rating,” as JP Morgan told in a report on Thursday.
The same day, Reliance Industries announced that it was in talks with Saudi Arabian energy giant Aramco for a stake sale in its oil-to-chemicals business at an enterprise value of $75 billion. This deal was expected to be closed by March 2020, which has been delayed, but RIL ideally managed to assuage investor concerns by raising the funds via other sources as well.