Reliance Industries is the first Indian company to achieve a market capitalization of $200 billion – Insiderfolks, Thursday (September 10) after its shares hit a record high of Rs 2.344.95, up more than 8 percent.
Investors buzzed the stock after the Mukesh Ambani-led group raised Rs 7,500 crore from the US private equity firm Silver Lake by selling 1.75 percent of Reliance Retail Ventures Ltd (RRVL), the holding company’s retail shares.
At the highest point of Rs 2,344.95 today, RIL’s market capitalization amounts to Rs 14.70 lakh crore, while the market value of its partially paying rights stock increased to Rs 58,800 cror, bringing the total market capitalization of RIL to Rs 15.28 lakh crore or $208 billion.
Mukesh Ambani, the richest Asian individual, aims to increase over Rs 60,000 crore by selling up to 15% of its retail sector.
The firm reportedly offered to sell shares to all investors who had invested capital in Jio Platforms in the last round of fundraising that helped the oil-retail-telecom conglomerate collect $20 billion, leaving it free of net debt well ahead of the deadline set by Mr. Ambani in 2019 AGM.
KKR is expected to infuse $1.5 billion into RRVL after Silver Lake, according to a survey.
Analysts assume that the market could be more upside down if RIL continues to ramp up Jio Mart’s market and increase more investment in Reliance Retail.
“Further developments in the retail market and the growth of Jio Mart’s business would be primary factors for the group in the immediate future.
The listing of the digital and retail sectors over the next few years will also lead to substantial value unlocking for shareholders in the long run.
We continue to retain our confidence-industry purchasing rating with a target of Rs 2,366,” said Jyoti Roy, DVP-Equity.
Last month, RIL acquired the retail company of Kishore Biyani-led Future Group, consolidating its leading role in India’s retail market, for Rs 24,713 crore.
Many market watchers conclude that the new fundraising of RIL — this time in integrated retail — is a strong sign that Ambani is preparing for a major assault on this sector.
As of 03:07 p.m., RIL ‘s shares stood 6.98 percent higher at Rs 2.312.20 apiece, outperforming the wider Sensex, which amounted to 626.81 or 1.64 percent.
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