Shares of Reliance Industries Ltd (RIL) reached a market cap of Rs 16 trillion for the first time on Wednesday as investors continued to buy the shares, anticipating a higher valuation as part of the sale of shares in Reliance Retail.
The stock gained 2.2% to hit a new high of Rs2,368.8 on BSE in morning trading, briefly pushing its valuation through Rs 16 trillion before retreating slightly. At 11:13 am, the stock was trading at Rs2,346.70 on BSE, up 1.27% from its previous close. Since the start of the year, it is up 56.68%.
On September 9, California private equity fund Silver Lake took a 1.75% stake in Reliance Retail Ventures for Rs 7,500 crore, valuing the company at Rs 4.21 billion, or $ 57 billion. mint said the retail arm is expected to attract additional investment worth $ 5 billion from KKR and Co., Mubadala Investment Co. and Abu Dhabi Investment Authority.
Previously, unconfirmed media reports indicated that RIL was looking to sell 40% of Reliance Retail’s stake to Amazon for a consideration of $ 20 billion.
“With the dominance of Reliance Retail (RR) in offline mode and the strength of Amazon online, the marriage seems perfect. The challenges could be RR’s online ambition, transaction structure, control issues, etc. A potential deal could result in an O2O monster affecting the entire consumer ecosystem, ”Jefferies India said in a report to its investors.
Recently, Bloomberg reported that investor demand for the retail operations of Reliance Industries Ltd is so strong that Carlyle Group Inc. and SoftBank Group Corp. are among those who have been put on a waiting list.
“We expect strategic investor interest in RRVL (Reliance Retail Ventures Ltd) who could expand the company’s digital footprint. In addition, the sale of the stake in RRVL will improve the health of the balance sheet in a difficult macro for O2C activities in the near future. term, ”Axis Capital said in a report to its investors.
RIL, the largest Indian company, now has a market capitalization of 116.01 billion rupees, followed by Tata Consultancy Services (9.35 billion rupees), HDFC Bank (5.95 billion rupees), Hindustan Unilever Ltd ( 4.99 billion rupees) and Infosys (4.19 billion rupees).
Among the world‘s oil and gas companies, Saudi Aramco, with a market capitalization of $ 1.93 trillion, still retains the top spot, followed by RIL. Among global stocks, Apple Inc. is the world‘s most valued company with a market value of $ 1.97 trillion, followed by Saudi Aramco with $ 1.93 trillion, Microsoft Corp ($ 1.55 trillion) , Amazon.com Inc ($ 1.55 trillion) and Alphabet Inc ($ 1.03 trillion).