Mukesh Ambani’s Reliance overtakes Exxon to become world’s second most valuable energy firm

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Published: July 24, 2020 7:36 PM

On Thursday, Reliance was ranked 48th and was behind ExxonMobil. Its share price on Friday scaled an all-time high of Rs 2,163 before settling at Rs 2,146.20, taking the company to 46th position.

Reliance is now the second most valuable energy firm. (Reuters)

Reliance Industries has overtaken ExxonMobil to become the world’s second most valuable energy company after its market capitalisation 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. Its share price on Friday scaled an all-time high of Rs 2,163 before settling at Rs 2,146.20, taking the company to 46th position.

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. No Indian company has ever crossed an m-cap of Rs 14 lakh crore. Besides being higher than ExxonMobil in m-cap, Reliance is also above Chevron which has an m-cap of about 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 touched a bottom of Rs 867 on March 23, 2020, when the total market value of the company stood at Rs 5.5 lakh crore or USD 73.5 billion. It added USD 115.9 billion to shareholder wealth within just four months one of the highest value creation feats in the world in such a short time – mostly on the back of record fundraising from equity dilution in its digital unit, Jio Platforms.

The firm added USD 39 billion market value within five weeks and USD 29 billion in the last 14 trading sessions.
ReliancePP or the partly paid-up shares issued in recently concluded Rights Issue have generated over 4.1 times returns to investors in less than two months.

The issue closed on June 4, 2020, when investors had to pay Rs 314.25 to own each of the partly paid-up share.
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 sale in Jio Platforms, and investment by BP in its fuel retailing venture.
The combined capital raised has no precedence globally in such a short time.

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