Shares of Reliance Industries (RIL) surged on Monday to a new nine-year high, as investors placed bullish bet on the stock after the company announced an extension of its Jio Prime membership deadline till April 15. The RIL stock soared 3.94% before closing the session at `1,371.20 on the BSE. This is the highest closing since January 2008. During the day, the stock had jumped 4.60% to `1,380, a 52-week high. On the NSE, it rose 3.96% to close at `1,373.25. The market cap of RIL increased by `16,906 crore on Monday, according to Bloomberg data.
Of the 39 brokerages who track the stock, 74.4 % has given it a ‘buy’ rating and the remaining 25.6% has given it a ‘hold’ rating. A total of 1.12 crore Reliance shares were traded at the counters of the BSE and the NSE. The company said it had 72 million ‘Prime’ subscribers on its Jio telecom network, much more than the 50 million as was widely expected.
You might also want to see this:
Yet, Reliance extended its free service under Prime by a quarter pushing back monetization yet again. This allows members unlimited data for an upfront annual subscription of `99 and a monthly fee of `303. “This is well above our and market expectations of 25-50mn prime subscribers. Reliance has extended the offering to April 15, which could further add to this number by the time it reports its 4Q results,” according to a strategy report by Jefferies.
Meanwhile, shares of other telecom majors Bharti Airtel and Idea Cellular fell more than 2% on the exchanges.