Mumbai: Reliance Industries<\/a> (RIL) extended its record-breaking run on the bourses, helping the benchmark indices on Friday erase early losses and end almost flat over the previous session. The stock soared 4.15% to a new all-time high of 2,146 on Friday, while its partly-paid right issue shares<\/a> jumped 8.8% to Rs 1,284.50, crossing the rights issue price of Rs 1,257.
The rally helped the telecom-to-oil conglomerate’s market capitalisation<\/a> (excluding partly-paid shares) touched Rs 13.60 lakh crore on Friday, extending its dominance as the most-valued Indian company. Including the value of the partly-paid shares, Reliance’s total market-cap stood at Rs 14.15 lakh crore on Friday
Aided by the 140% run-up in the stock since March 20, chairman Mukesh Ambani’s net worth has risen to $83.4 billion, making him the fifth-richest person in the world. He is just $5 billion behind Facebook<\/a> founder Mark Zuckerberg, the world’s fourth richest.
The stock rally has been driven by RIL’s recent efforts to cut debt. The company has raised over Rs 1.52 lakh crore through a series of private share issues in Jio Platforms<\/a> to global tech giants like Google<\/a> and Facebook and private equity firms. In June, the company’s Rs 53,125-crore rights issue sailed through. The money raised will be used to cut debt. Chairman Ambani claimed the company has become net debt-free after the fund-raising exercise.
Mumbai: Reliance Industries<\/a> (RIL) extended its record-breaking run on the bourses, helping the benchmark indices on Friday erase early losses and end almost flat over the previous session. The stock soared 4.15% to a new all-time high of 2,146 on Friday, while its partly-paid right issue shares<\/a> jumped 8.8% to Rs 1,284.50, crossing the rights issue price of Rs 1,257.
The rally helped the telecom-to-oil conglomerate’s market capitalisation<\/a> (excluding partly-paid shares) touched Rs 13.60 lakh crore on Friday, extending its dominance as the most-valued Indian company. Including the value of the partly-paid shares, Reliance’s total market-cap stood at Rs 14.15 lakh crore on Friday
Aided by the 140% run-up in the stock since March 20, chairman Mukesh Ambani’s net worth has risen to $83.4 billion, making him the fifth-richest person in the world. He is just $5 billion behind Facebook<\/a> founder Mark Zuckerberg, the world’s fourth richest.
The stock rally has been driven by RIL’s recent efforts to cut debt. The company has raised over Rs 1.52 lakh crore through a series of private share issues in Jio Platforms<\/a> to global tech giants like Google<\/a> and Facebook and private equity firms. In June, the company’s Rs 53,125-crore rights issue sailed through. The money raised will be used to cut debt. Chairman Ambani claimed the company has become net debt-free after the fund-raising exercise.
Raising its target price on the stock to Rs 2,317, BNP Paribas said on Friday that proceeds from the Jio stake sales have driven a large part of the increase in valuation along with a higher multiple for Jio and the retail business in light of the potential growth outlook.
“We now value RIL on an FY23E basis to better capture the growth outlook for all the businesses. Despite its recent run, RIL still has multiple catalysts in place in terms of a stake sale in retail and a potential sale in O2C even at a lower valuation,” said a note by BNP Paribas.
Reliance’s partly paid-up rights shares are trading at a 140% premium to the intrinsic value of Rs 537. The intrinsic value is one-fourth stock price of Reliance Industries. Investors have so far paid only 25% or 314.25 of rights issue price of 1,257.
RIL shares also strengthened their dominance on the benchmark indices.
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