Reliance Industries becomes first Indian company to have a market capitalisation of $200 billion

New Delhi, 10-Sep-2020

Reliance Industries on Thursday (September 10) became the first Indian company to have a market capitalisation of more than $200 billion after its shares touched a record high of Rs 2,344.95, up over 8%. Investors turned bullish on the stock after the Mukesh Ambani-led conglomerate raised Rs 7,500 crore from US private equity investor Silver Lake by selling 1.75% stake in Reliance Retail Ventures Ltd (RRVL), the holding company of its retail assets. At the day's highest points of Rs 2,344.95, RIL's marketcapitalisation stood at Rs 14.70 lakh crore while the market value of its partly paid rights shares rose to Rs 58,800 cror, taking the combined market capitalisation of RIL to Rs 15.28 lakh crore or $208 billion. According to a report, Mukesh Ambani, Asia's richest person is aiming to raise in excess of Rs 60,000 crore by selling up to 15% stake in its retail business. The company has reportedly offered to sell stake to all the investors who invested money in Jio platforms in the last fundraising round that helped the oil-retail-telecom conglomerate raise $20 billion, making it net debt free much ahead of the deadline set by Mr Ambani in 2019 AGM of the company. After Silver Lake, KKR is likely to infuse $1.5 billion in to RRVL, according to a report. Analysts believe there could be further upside in the stock if RIL manages to scale up Jio Mart business and raises further investment in Reliance Retail. "Further investments in the retail business and scaling up of Jio Mart business will be key triggers for the company in the near future. Listing of the digital and retail business over the next few years would also lead to significant value unlocking for shareholders in the long run. We continue to maintain our buy rating on reliance Industries with a target of Rs 2,366,� said Jyoti Roy, DVP- Equity Strategist, Angel Broking Ltd. Last month, RIL acquired the retail business of Kishore Biyani-led Future Group, consolidating its leadership position in India's retail sector, for Rs 24,713 crore. Many industry watchers are of the opinion that RIL's latest fundraising�this time in organised retail�is a clear indication that Ambani is ready for a massive onslaught on this industry. As of 03:07 pm, RIL shares traded 6.98% higher at Rs 2,312.20 apiece, outperforming the broader Sensex, which was up 626.81 points or 1.64%.