- Reliance Industries has overtaken ExxonMobil to become the world’s second most valuable energy firm after its market capitalization scaled to a record high of over Rs 14 lakh crore.
Reliance Industries has overtaken ExxonMobil to become the world’s second most valuable energy firm after its market capitalization scaled to a record high of over Rs 14 lakh crore.
The oil-to-telecom conglomerate is now ranked 46th globally on market cap, according to stock market data.
On Thursday, Reliance was ranked 48th and was behind ExxonMobil. The share price on Friday reached an all-time high of Rs 2,163 before settling at Rs 2,146.20, bringing the firm to 46th place.
The Rs 13.6 lakh crore m-cap of Reliance together with Rs 54,262 crore m-cap of its partly-paid shares that were issued in the recent rights issue and are traded separately, puts the company’s combined market value at Rs 14.1 lakh crore or USD 189.3 billion.
This was enough to race past ExxonMobil which has an m-cap of USD 184.7 billion.
Globally, Saudi Aramco has the highest market cap of USD 1.75 trillion, followed by Apple (USD 1.6 trillion), Microsoft (USD 1.5 trillion), Amazon (USD 1.48 trillion), and Alphabet (USD 1.03 trillion).
Reliance is now the second most valuable energy firm. Aramco being the top energy company.
While being higher than ExxonMobil in m-cap, Reliance is also above Chevron which has an m-cap of around USD 169 billion as well as likes of Oracle, Unilever, Bank of China, BHP Group, Royal Dutch Shell and SoftBank Group.
Reliance is the 10th highest m-cap company in Asia. China’s Alibaba Group is ranked 7th globally.
At 46th rank, Reliance is just below PepsiCo which has an m-cap of USD 189.8 billion.
Reliance share price had hit a bottom of Rs 867 on March 23, 2020, when the total market cap of the company stood at Rs 5.5 lakh crore or USD 73.5 billion.
It added USD 115.9 billion to shareholder capital within just four months – one of the highest value development feats in the world in such a short period-largely on the back of massive fundraising from equity dilution in its digital subsidiary, Jio Platforms.
The company gained USD 39 billion market cap within five weeks and USD 29 billion over the last 14 trading sessions.
ReliancePP or the partly paid-up shares issued in recently concluded Rights Issues have generated over 4.1 times returns to investors in less than two months.
The problem closed on June 4, 2020, when investors had to pay Rs 314.25 to own one of the partly paid-up shares.
The ReliancePP shares listed on stock exchanges on June 15, 2020
Reliance raised a total of Rs 2,12,809 crore through Rights Issue, equity selling in Jio Platforms, and investment by BP in its fuel retailing business.
The cumulative capital raised has no precedent globally in such a short period.