RIL among world's top 50 most-valued publicly traded firms2 min read . Updated: 15 Jul 2020, 11:51 AM IST
- In terms of global oil & gas companies, RIL ranks third
- On Wednesday, the market value of the stock stood at ₹$170.36 billion
MUMBAI: Mukesh Ambani-led Reliance Industries Ltd on Wednesday entered the list of the world's top 50 most-valued publicly traded firms after its shares surged over 120% since mid-March.
The rise in market value of the oil-to-telecom conglomerate is driven by its retail and telecom businesses.
The stock was trading at a record high of ₹1959.45 on the BSE, up 2.2% from its previous close. On Wednesday, the market value of the stock stood at ₹$170.36 billion, according to Bloomberg data.
The scrip's market value is now higher than Abbvie Inc, ASML Holding NV, Abbott Laboratories. Saudi Aramco is the world's most-valued company with a market value of $1.78 trillion followed by Apple Inc $1.66 trillion, Microsoft Corp 1.62 trillion, Amazon.Com Inc $1.60 trillion and Alphabet Inc $1.05 trillion.
RIL had in 2014 expressed its desire to be among the top 50 companies globally by 2017. Mukesh Ambani, chairman and managing director of RIL, had then said, "Over the next three years, the commissioning of each of our large projects in petrochemicals and refining, strengthening of our retail business and the launch of Jio business will propel us closer to our aspiration of being a Fortune 50 company as we complete 40 years of our corporate journey."
The Street, which eyes RIL's 43rd AGM today, keenly awaits clarity on its oil-to-chemicals deal with Saudi Aramco and update on JioMart.
In terms of global oil & gas companies, RIL ranks third. Saudi Aramco remains top followed by Exxon Mobil with market cap of $180.33 billion.
The stock has surged over 120% since mid-March. So far this year, it has gained 26% following the sale of a total of 25.24% stake in Jio Platforms to Facebook, General Atlantic, TPG, KKR, Silver Lake, L Catterton, Vista Equity Partners, Abu Dhabi Investment Authority, Mubadala Investment Company, and Public Investment Fund (PIF), Intel Capital and Qualcomm Ventures. The company has so far raised Rs118,318.45 crore from the stake sale.
RIL parent also raised ₹53,124 crore through a rights issue. Its net debt was at ₹1.61 trillion as of 31 March, 2020. The company on 19 June said that with these investments it is now a net debt free company.
"We now value Jio’s non-wireless verticals (health, education, agri-tech, home broadband, enterprise services, Internet of Things (IoT), and Jio’s app suite), given: (1) the significant progress in many of them and (2) the possibility of aggressive customer ramp-up enabled by the recent significant deleveraging" said Credit Suisse in a report to its investors.
RIL’s refining and marketing segment contributes 51.15% to the company’s revenue, while its petrochemicals unit brings in 22.34%. Organised retail’s share in the revenue pie is at 17%, while that of the digital business is 6%, and exploration and production at 0.65% as on 31 March.