Reliance Industries continues to power ahead, striking deal after deal, to trade at lifetime highs. It has been a dream run both for Reliance and its shareholders
Reliance Industries (RIL) share price surged over 3 per cent to hit a fresh all-time high of Rs 1,882.80 apiece on BSE in late afternoon deals on Friday. Today Mukesh Ambani-led RIL surpassed its previous high of Rs 1,833, touched earlier this week. From March lows of Rs 868, RIL stock price has rallied 117 per cent, fuelled by the investments raised by the 11 global investors in its digital arm Jio Platforms. Global energy supermajor BP plc and Reliance Industries after market hours on Thursday announced the start of their fuel retailing joint venture under the brand ‘Jio-bp’. “Reliance Industries continues to power ahead, striking deal after deal, to trade at lifetime highs. It has been a dream run both for Reliance and its shareholders, despite all the gloom post COVID-19,” Aamar Deo Singh, Head Advisory, Angel Broking, told Financial Express Online.
“Becoming a debt-free company, turning into a tech company, and entering into strategic tie-ups with global leaders such as Facebook, KKR amongst others, have greatly helped the company,” Aamar Deo added. He advised investors to adopt a cautious approach as the stock has gone too far too fast. “Overall the uptrend remains intact and it appears to be within striking distance of the 2000-mark,” he said.
Since April this year, RIL has raised a total investment of Rs 1.17 lakh crore for an equity stake of 25.09 per cent in Jio Platforms. “Reliance Industries continues to surge higher as investors are bullish on the counter. The money flow in the company will reduce its debt burden considerably. The news of the addition of Future Group companies will lead to inorganic growth for retail business,” Vishal Wagh, Head of Research, Bonanza Portfolio Ltd, told Financial Express Online. “Technically speaking till the time it is above 1750 it may reach the target of 2033-2070,” he added.
Besides, the company’s digital arm Reliance Jio launched JioMeet app which can support up to 100 users in a single session, to cash in the opportunity of surged video conferencing demand during the coronavirus-triggered lockdown. The launch of JioMeet app came after the increased usage of apps such as Zoom, Google Meet, Microsoft Teams, among others.
In a regulatory filing on Tuesday, RIL informed that Jio Platforms has received Rs 43,574 crore investment from Facebook. The deal was announced on April 22, for a 9.99 per cent stake in the company. On July 15, Reliance Industries is scheduled to hold its first virtual annual general meeting (AGM) of shareholders through video conferencing or other audio-visual means.