- Reliance Retail shares, which began trading on the unlisted market this year in June, have risen by more than 75 percent over the five months and are currently trading between Rs 825 and Rs 850 per share.
- Parent Reliance Industries became the first Indian company to achieve the Rs 10-lakh-crore market value last week.
The Reliance Industries became the first Indian company to cross Rs 10 lakh crore’s market value and Reliance Retail’s market capitalization exceeded Rs 5 lakh crore as share prices rose dramatically.
The value of Reliance Retail increased substantially to Rs 5 lakh crore ($75.2 billion) due to a sharp rise in unlisted market share prices triggered by expectations that the business will be publicly listed earlier than previously planned.
Reliance Retail is currently one of the most traded stocks on the unlisted market,” Narottam Dharawat, a broker based in Mumbai that trades in unlisted shares, said. “Shares are trading between Rs 825 and Rs 850.”
Ambani revealed in August that Reliance Retail could be listed on the stock market in five years at the annual business meeting in August this year, but shareholders are hoping that the listing will come earlier to help offset the business debt.
Reliance Retail shares, which began trading on the unlisted market this year in June, have risen by more than 75 percent over the five months and are currently trading between Rs 825 and Rs 850 per share.
In June this year, Reliance Retail started to trade its shares on the unlisted market. Reliance Retail, India’s largest retailer by sales, has seen share prices grow more than 75% since June and share sellers have been employees of the company, brokers told.
Parent Reliance Industries became the first Indian company to achieve the Rs 10-lakh-crore market value last week.
Reliance Retail was also India’s first to record annual turnover of Rs 1 lakh crore when it recorded revenue from Rs 1.3 lakh crore in 2019 up from Rs 69,198 crore in the 2018 fiscal year.
Mukesh Ambani announced earlier this year plans to reduce the company’s net debt to zero in 18 months using steps including a stake in Saudi Arabia Aramco’s oil-to-chemicals sector.
RIL has signed an agreement in August that gives the major European oil a 49% stake in the Indian conglomerate’s fuel retail business.
Probably receiving some 1.1 lakh crore from Aramco and BP in FY21, RIL is on track to reach its zero net debt target, says Edelweiss Securities, with a target price of 1.716/share for stock purchases.
RIL operates the world’s largest oil refining complex in Jamnagar, Gujarat, where crude low-quality fuels can be processed and converted into higher-grade fuels, partially shielding them from price volatility.
BofAML said in a report last month that on the back of its new business venture and fixed broadband business, RIL could become the first Indian company to achieve a $200 billion market capitalization.