RIL shares cross $200 billion market cap2 min read . Updated: 10 Sep 2020, 12:23 PM IST
- Apple Inc is the world's most-valued company with a market value of $2 trillion followed by Saudi Aramco at $1.91 trillion, Amazon.com Inc $1.58 trillion, Microsoft Corp 1.53 trillion, and Alphabet Inc $1.04 trillion
MUMBAI: Mukesh Ambani-led Reliance Industries Ltd has become India's first company to cross the $200 billion market cap after its shares surged nearly 157% since mid-March. The rise in market value of the oil-to-telecom conglomerate is driven by its retail and telecom operations.
The stock was currently trading at a record high of ₹2233 on the BSE, up 3.55% from its previous close. On Wednesday, the market value of the stock stood at $201 billion, according to Bloomberg data.
Apple Inc is the world's most-valued company with a market value of $2 trillion followed by Saudi Aramco at $1.91 trillion, Amazon.com Inc $1.58 trillion, Microsoft Corp 1.53 trillion, and Alphabet Inc $1.04 trillion.
In terms of global oil & gas companies, RIL ranks second, after Saudi Aramco.
The stock has gained 48.7% so far this year following the sale of its stake in Jio and retail arm.
On Tuesday, California-based private equity fund Silver Lake picked up a 1.75% stake in Reliance Retail Ventures for ₹7,500 crore, valuing the company at ₹4.21 trillion, or $57 billion. Mint reported that the retail arm is set to draw additional investments worth $5 billion from KKR and Co., Mubadala Investment Co. and Abu Dhabi Investment Authority.
"Over the last 2-3 months, there has been news flow about RIL being in talks with various strategic partners (global retailers, e-commerce companies), and even in JPL’s case, the entry of strategic partners was a key positive, in our view. Hence, while any stake sale in RRL is positive news, we believe the markets would be more likely to bid up strategic investors than they would bid up PE investments", said JP Morgan in a note to its investors.
Earlier, the company sold 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 ₹118,318.45 crore from the stake sale.
"We see capital allocation, execution and de-gearing as key to the next leg of stock outperformance as RIL capitalizes on India's US$1.3tn+ TAM (total addressable market) in new energy, chemicals, and retail. With industry consolidation picking up pace in telecom, retail, and global refining, we see RIL emerging stronger post Covid-19 and margins should surprise as pricing power rises", said Morgan Stanely in a report to its investors. The brokerage has given an overweight rating on the stock with a target price of ₹2247 a share.