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Reliance Industries becomes first Indian firm to cross market capitalisation of ₹10 lakh crore

Mukesh Ambani

Mukesh Ambani  

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This makes RIL chairman Mukesh Ambani the 12th richest man in the world and Asia’s richest with personal wealth of $60.7 billion

Mukesh Ambani-led Reliance Industries (RIL) became the first Indian firm to cross the market capitalisation of ₹10 lakh crore as its shares touched its new 52-week high of ₹1,584 on before closing at ₹1579.95 on Thursday, valuing at over ₹10,01,555.42 crore, India’s most valued.

This makes RIL chairman Mukesh Ambani the 12th richest man in the world and Asia’s richest with personal wealth of $60.7 billion, narrowing the gap with Larry Ellison, founder and largest shareholder of Oracle, with personal wealth of $61.6 billion, according to Bloomberg Billionaires Index.

Mr. Ambani controls almost 42% of Reliance Industries, owner of the world’s largest oil refining complex, Reliance Retail and Reliance Jio.

He has added $16.4 billion to his wealth or 37% surge in his wealth year-to-date to become Asia’s most richest overtaking Jack Ma of Alibaba Group with personal wealth of $45 billion placed 19th Bloomberg Billionaires Index.

RIL has widened the gap with Tata Consultancy Services (TCS), India's second most valued firm as TCS market capitalisation stood at ₹7,81,772 crore with 1.5% increase in its share price to ₹2,083.4.

It took just 25 trading sessions for the oil-to-retail conglomerate to reach the market capitalisation of ₹10 lakh crore from ₹9 lakh crore, while it took 284 trading sessions to reach the market capitalisation of ₹9 lakh crore from ₹8 lakh crore.

Investors are bullish on RIL after its chairman announced plans to make the company debt free by FY2021 as the company comes to end of huge capex cycle of over ₹3.5 lakh crore in the last three years.

RIL has entered into an agreement with Saudi Aramco to sell 20% stake in oil-to-chemicals business at valuation of $75 billion. The company is in talks with strategic and financial investors to sell stakes in retail, telecom and media businesses.

The company is reportedly in talks with Sony Corp. and Bennett Coleman & Company Limited (BCCL) also known as The Times Group to sell stakes in RIL's entertainment and news channels respectively.

On talks with Sony Corp., a RIL spokesperson said, "As a policy, we do not comment on media speculation and rumours. Our company evaluates various opportunities on an ongoing basis. We have made and will continue to make necessary disclosures in compliance with our obligations under Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015 and our agreements with the stock exchanges."

When asked about Times Group, the spokesperson said, "Reliance Industries firmly denies... to sell news assets to the Times group. The story is baseless and false."

Jio Platforms

Meanwhile,RIL has set up a wholly-owned subsidiary (WOS) namely Jio Platforms Limited (JPL) for its digital platform initiatives. JPL was incorporated on November 15, 2019 and is yet to commence its business operations.

"It is hereby informed that the WOS has been incorporated and the Company, as a subscriber to the memorandum of association of the WOS, has invested Rs 1,00,000 to acquire 10,000 equity shares of Rs. 10 each at par of the WOS namely 'Jio Platforms Limited' (JPL)," said a RIL statement.

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Printable version | Dec 6, 2019 8:45:04 PM | https://www.thehindu.com/business/ril-creates-history-becomes-first-indian-firm-to-cross-market-capitalisation-of-10-lakh-crore/article30104699.ece

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