Reliance's market capitalisation increased by Rs 2,32,830 crore from its first deal announcement on March 22 and Rs 4,69,488 crore from its March lows to Rs 10,61,,672.57 crore currently.
Share price of Reliance Industries has kept its northward journey since the conglomerate's telecom arm started performing well. It had seen a sharp correction for a month following COVID-19-led sell-off, but when the market recovered in April, the stock picked up momentum again.
The stock gathered more steam after Reliance announced stake sale deal with Facebook on April 22. Since then the Mukesh Ambani chaired conglomerate has signed many deals to sell minority stake in Jio with global investors including Silver Lake, General Atlantic, ADIA.
So far Jio Platforms has raised Rs 97,885.65 crore from seven investors in less than seven weeks, and in the same period, the Reliance share price has shot up 32.5 percent to hit a fresh record high of Rs 1,624 today. But the stock closed lower by 0.67 percent to Rs 1,570.05 due to profit booking on June 8, hence the gains trimmed to 28 percent.
Also read: ADIA new investor in Jio Platforms as RIL unit raises total of nearly Rs 1 lakh crore
The lockdowns put in place around the globe to curb spread of COVID-19 led to a boost for the digitisation story and tech/telecom companies gained from the situation. This gave a further boost to the stock, which has surged 79 percent from its March lows and has become the biggest gainer among BSE Sensex and Nifty50 stocks.
With these deals, the company is moving closer to achieving its zero net-debt target before its deadline of March 2021.
"As we achieve our zero net-debt target, I assure you my dear shareholders that we will reward you abundantly through higher dividends, periodic bonus issues and other means, and at a more accelerated pace than any time in our history," Mukesh Ambani, CMD had said at the company's AGM in 2019.
Reliance's market capitalisation increased by Rs 2,32,830 crore from its first deal announcement on March 22 and Rs 4,69,488 crore from its March lows to Rs 10,61,,672.57 crore currently.
"The line-up of investors RIL got in last few weeks, is incredible. Mukesh Ambani's vision is what sets him apart and building so many businesses successfully by Reliance Industries is extraordinary," Vallabh Bhansali, Co-Founder and Chairman of Enam Group told CNBC-TV18.
"The potential of RIL is not just in India, but internationally. Reliance Industries can go to any market and list itself as international relationships are a big positive for Reliance Industries," he said.
Reliance struck the first deal with Whatsapp-owner Facebook Inc which signed agreement on April 22 to invest a massive Rs 43,574 crore in Jio Platforms for a 9.99 percent stake.
Since then it has announced deals worth Rs 97,885.65 crore (including Facebook deal) with seven global investors which are Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala and ADIA in less than seven weeks. And it sold little over 21 percent stake in Jio Platforms.
An investment of Rs 5,683.50 crore by a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) for 1.16 percent stake in Jio Platforms is the latest one, while Silver Lake and co-investors decided to invest additional Rs 4,546.80 crore in Jio Platforms.
"Jio Platforms is at the forefront of India's digital revolution, poised to benefit from major socioeconomic developments and the transformative effects of technology on the way people live and work. The rapid growth of the business, which has established itself as a market leader in just four years, has been built on a strong track record of strategic execution," Hamad Shahwan Aldhaheri, Executive Director of the Private Equities Department at ADIA said in a RIL release.
Reliance's mega rights issue of Rs 53,124 crore also received good response from its shareholders, getting subscribed 1.59 times and receiving Rs 84,000 crore worth of bids.
It is clear that Reliance is well ahead of its schedule to achieve debt reduction plan. "With a strong visibility to these equity infusions, RIL is set to achieve net zero debt status ahead of its own aggressive timeline of March 31, 2021," RIL said on April 30.
Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd which publishes Moneycontrol.
