RIL becomes India's first $150 bn company; stock price doubles in 59 sessions

With a sharp jump in Friday's session, the oil-to-telecom behemoth Reliance Industries became the first Indian company to be valued at $150 billion. In rupee terms, it also became the first company to be valued at over Rs 11 lakh crore.

Reliance Industries is among the most valued energy companies in the world. Its market cap is more than that of Total SA, Royal Dutch Shell, BP but lower than Exxon Mobil, Chevron and the most valued energy company Saudi Aramco.

It took 59 sessions for RIL to double investors’ money amid the ongoing recovery in the domestic equity market. Shares of the company rallied to its all-time high of Rs 1,738.95 on June 19 from its panic low of Rs 867.82, scaled on March 23.

Shares of the company hogged the limelight in Friday’s trade after the company announced that it has now become net debt-free. The company has managed to raise a record Rs 1.69 lakh crore from global investors and a rights issue in under two months.

RIL shares surged 7 per cent to the day’s high of Rs 1,788.60, which is also a record high for the scrip.

Reliance raised Rs 1.15 lakh crore from global tech investors by selling a little less than a quarter of the firm's digital arm, Jio Platforms Ltd, and another Rs 53,124.20 crore through a rights issue in the past 58 days.

Taken together with last year's sale of 49 per cent stake in fuel retailing venture to BP Plc of UK for Rs 7,000 crore, the total fund raised is in excess of Rs 1.75 lakh crore, the company said in a statement.

Reliance had net debt of Rs 1,61,035 crore as on March 31, 2020. "With these investments, RIL has become net debt-free," RIL said in a release.

Jyoti Roy, DVP Equity Strategist, Angel Broking said, “The company has built up a dominant presence in refining, petrochemicals, telecom and retail businesses. We believe that the digital and retail business will be key growth drivers for the company going forward and the proposed listing of the retail business over the next few years is along expected lines and will lead to a rerating for the company. We also expect a similar move by the company for its digital business in the future.”

The shares of the company closed 6.23 per cent higher at Rs 1759.50 on BSE.