- Mukesh Ambani-led Reliance Industries Ltd (RIL) joined the list of the world ‘s top 50 most valuable publicly-traded companies on Wednesday
Mukesh Ambani-led Reliance Industries Ltd (RIL) joined the list of the world ‘s top 50 most valuable publicly-traded companies on Wednesday after its shares have risen more than 120 percent since mid-March.
The oil-to-telecom conglomerate’s increase in market value is driven by their retail and telecom businesses.
The stock traded on the BSE at a record high of 1959.45, 2.2 percent higher than its previous closing. According to Bloomberg reports, the stock’s market value stood at around $170.36 billion on Wednesday.
The market value of the scrip is now greater than that of Abbvie Inc, ASML Holding NV, Abbott Laboratories. Saudi Aramco is the most valuable corporation in the world, with a market cap of $1.78 trillion followed by Apple Inc $1.66 trillion, Microsoft Corp 1.62 trillion, Amazon. Com Inc $1.60 trillion, and Alphabet Inc $1.05 trillion, respectively.
In 2014 RIL had expressed its intention to be one of the world’s top 50 corporations by 2017. Mukesh Ambani, RIL’s chairman, and managing director, then said, “Over the next three years, the commissioning of each of our major petrochemical and refining ventures, the strengthening of our retail sector and the start-up of Jio sector will propel us to close to our aspiration of Fortune 50.
The Path, which today sees RIL’s 43rd AGM, is eagerly awaiting clarification about its oil-to-chemicals deal with Saudi Aramco and JioMart update.
RIL is ranked third in terms of the major oil & gas firms. Saudi Aramco remains top led by Exxon Mobil, with a $180.33 billion market value.
Since mid-March, the stock has risen more than 120 percent. So far this year, it has acquired 26 percent following the sale to Twitter, General Atlantic, TPG, KKR, Silver Lake, L Catterton, Vista Equity Partners, Abu Dhabi Investment Authority, Mubadala Investment Company and Public Investment Fund (PIF), Intel Capital and Qualcomm Ventures of a total of 25.24 percent interest in Jio Platforms. The company has so far raised Rs118,318.45 crore from the stake sale.
Also, RIL ‘s parents raised 53,124 crores on a question of citizenship. As of March 31, 2020, the net debt stood at 1.61 trillion dollars. The company said on 19 June that it is now a net debt-free organization with these investments.
“We now value Jio ‘s non-wireless verticals (health, education, agri-tech, home broadband, corporate services, the Internet of Things ( IoT), and Jio ‘s device suite), given: (1) significant progress in many of them and (2) the prospect of rapid customer ramp-ups allowed by the recent substantial deleveraging,” Credit Suisse said in a report to its investors.
RIL’s division of refining and marketing contributes 51.15% to the company’s sales, while its petrochemical unit accounts for 22.34%. The share of organized retail in the sales pie is 17 percent, while the share of the digital company is 6 percent, while the share of exploration and development is 0.65 percent as of March 31.