Stocks

Reliance hits market cap of Rs 10 lakh crore, a first for an Indian firm

Our Bureau Mumbai | Updated on November 28, 2019 Published on November 28, 2019

Riding on a stock market rally that defies the gloom generated by prime economic indicators, Mukesh Ambani-led Reliance Industries Ltd (RIL) created history on Thursday when it became the first Indian company to scale the market capitalization of Rs 10 lakh crore.

RIL shares have risen nearly 40% so far this year.

The benchmark rose 109 points higher on Thursday to settle at 41,130.

The stock market euphoria over the last few days helped RIL reach a new 52-week high of Rs 1,584 a share on Thursday before closing at Rs 1,579.95 a share. At this share price, RIL is valued at Rs 10,01,555.42 crore, making it India’s most valued company.

Ambani, who owns some 42% stake in RIL, is now ranked 12th richest in the world and Asia’s richest with a personal wealth of $60.7 billion.

Bank of America Merrill Lynch said in an October research note that RIL could become the first Indian company to reach $200 billion in market capitalization in 24 months driven mainly by its new commerce initiatives, SME enterprise play, fibre broadband and digital initiatives.

Market sources said that the interest in RIL shares has been stoked by a series of announcements made by Ambani since August to make it a net debt-free company by FY21, including selling a 20% stake in its oil to chemicals business to Saudi Aramco, the world’s largest oil producer, for Rs 1.03 lakh crore.

In October, RIL also said it was setting up a wholly-owned subsidiary for its digital initiatives including RJio.

Published on November 28, 2019
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