Reliance Industries became the first Indian company to have a market capitalization of more than $200 billion after its shares touched a record high of Rs 2,344.95, up over 8%, on Thursday, September 10.
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 Reliance Retail.
At the day’s highest points of Rs 2,344.95, RIL’s market capitalization stood at Rs 14.70 lakh crore while the market value of its partly paid rights shares rose to Rs 58,800 crore, taking the combined market capitalization of RIL to Rs 15.28 lakh crore or $208 billion.
According to a report in the Economic Times, 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 a 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 into RRVL, according to a report.
Analysts believe there could be further upside in the stock if RIL manages to scale up the 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 organized retail—is a clear indication that Ambani is ready for a massive onslaught on this industry.
