From a 52-week low of Rs 867.82 touched on March 23, RIL shares have rallied over 155 per cent. This is for the first time when RIL shares have topped the Rs 2,200-mark.
Reliance Industries Ltd shares scaled a fresh record high of Rs 2,213 apiece on BSE, gaining 2.39 per cent on Thursday. Shares of Mukesh Ambani-controlled firm surpassed its previous high of Rs 2,198.80 per share hit on July 27 this year. In yesterday’s early morning trade, RIL announced that Silver Lake would invest Rs 7,500 crore in its retail arm Reliance Retail Ventures Ltd (RRVL). Media reports have suggested that more investments could follow in RRVL. According to a Financial Times report, Middle East sovereign wealth funds, including the Abu Dhabi Investment Authority (ADIA) and Saudi Arabia’s Public Investment Fund (PIF), are in talks to buy stakes in RIL’s retail arm. Similarly, Bloomberg also reported that KKR & Co. is in advanced talks to invest at least $1 billion in Reliance Retail. RIL share price has been on a gaining spree since the oil-to-telecom conglomerate announced back to back investments in its digital arm Jio Platforms.
From a 52-week low of Rs 867.82 touched on March 23, RIL shares have rallied over 155 per cent. This is for the first time when RIL shares have topped the Rs 2,200-mark. “We believe the investment by Silver Lake sets the stage for a series of investments in Reliance Retail and will potentially accelerate the tech transformation of the retail business (JioMart ramp-up),” said analysts at Axis Securities. They further added that in line with the recent reports, the brokerage firm expects interest from strategic investors in RRVL that could expand the digital footprint of the company. The stake sale in RRVL will improve the health of the balance sheet in a challenging macro for O2C business in the near term.
Axis Securities has maintained a ‘buy’ rating to the stock with a target price of Rs 2,300. It will take RIL to jump 6 per cent to hit the price target pegged by the brokerage firm. For the Jio Platforms, Reliance raised Rs 1.52 lakh crore in exchange for a total of 32.8 per cent equity stake sale. The highest stake of 9.99 per cent, so far, was picked up by the social media giant Facebook in April this year, for Rs 43,573.62 crore. Reliance Industries raised funds through Rs 53,124 crore mega rights issue. The company became net debt-free nine months ahead of its deadline of March 2021.
Around 10.15 AM, RIL shares were trading 2.20 per cent up at Rs 2,208 apiece, as compared to a 0.74 per cent rise in S&P BSE Sensex.