New Delhi, Jun 19 (PTI) The market valuation of Reliance Industries Ltd crossed Rs 11 lakh crore on Friday as shares rallied over 6 per cent after chairman Mukesh Ambani announced that his oil-to-telecom conglomerate had become net debt-free.
Reliance Industries is also the first Indian company to cross the Rs 11 lakh crore market valuation mark. The market capitalisation rose by Rs 65,477.03 crore to reach Rs 11,15,418.03 crore on the BSE.
The heavyweight stock zoomed 6.23 per cent to close at Rs 1,759.50 on the BSE. During the day, it soared 7.99 per cent to touch an all-time high of Rs 1,788.60. On the NSE, it surged 6.47 per cent to settle at Rs 1,763.20.
“The bulls continued to dominate and helped the index to gain over one-and-a-half per cent. The surge was led by index heavyweight, Reliance Industries, which announced that it has become net debt-free,” said Ajit Mishra, VP – Research, Religare Broking Ltd.
On Friday, the 30-share BSE index settled 523.68 points, or 1.53 per cent, higher at 34,731.73 helped by stellar gains in Reliance Industries. So far this year, the company’s shares have gained 16.20 per cent.
Earlier in the day, Ambani announced that Reliance Industries had become net debt-free after raising a record Rs 1.69 lakh crore from global investors and a rights issue in under two months.
Reliance Industries raised Rs 1.15 lakh crore from global tech investors by selling a little less than a quarter of the firm’s digital arm, Jio Platforms, and another Rs 53,124.20 crore through a rights issue in the past 58 days.
Taken together with last year’s sale of 49 per cent stake in fuel retailing venture to BP Plc of UK for Rs 7,000 crore, the total fund raised is in excess of Rs 1.75 lakh crore, the company said.
Reliance Industries had a net debt of Rs 1,61,035 crore as on March 31, 2020.
“With these investments, RIL has become net debt-free,” it said.
On Thursday, Reliance Industries said it has sold a 2.32 per cent stake in its digital unit to Saudi Arabia’s Public Investment Fund (PIF) for Rs 11,367 crore.
The investment by Saudi sovereign wealth fund is “at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore”, the company had said.