RIL shares jump 10%; m-cap zooms by Rs 71,638 cr after co announces roadmap to turn debt-free

The scrip of Reliance Industries on Tuesday zoomed nearly 10 per cent, adding Rs 71,638 crore to its market valuation after the company announced a host of investor-friendly proposals at its annual general meeting. The scrip jumped 9.72 per cent to close at Rs 1,275 on the BSE. During the day, it climbed 12.09 per cent to Rs 1,302.50.

It was the top gainer among the 30-front line companies on the key BSE index. On the NSE, shares gained 9.74 per cent to close at Rs 1,275.30.

Led by the rally in the scrip, the company's market valuation advanced by Rs 71,637.78 crore to Rs 8,08,233.78 crore on the BSE. On the traded volume front, 20.92 lakh shares were traded on the BSE and over 4.79 crore units on the NSE during the day.

"Reliance can further move towards Rs 1,300 soon. Going by the track record of the management and potential of the retail and digital market of India, Reliance's announcements will prompt a fresh rush of buying the stock that can take it to new highs in short-term and may pass Rs 2,000 levels in next 12 months," Romesh Tiwari, head of research, CapitalAim on the AGM of Reliance Industries Ltd said. Markets were closed on Monday on account of Bakri Id.

Reliance Industries chairman Mukesh Ambani on Monday announced plans to sell stakes in the firm's oil and chemicals business to Saudi oil giant Aramco and in fuel retail network to BP plc for Rs 1.15 lakh crore and said its telecom unit Jio will begin offering fibre-based broadband services from next month. Saudi Aramco will buy a 20 per cent stake in the oil and chemicals business of Reliance including the 1.36 million barrels a day Jamnagar refining complex in Gujarat, for an enterprise value of USD 75 billion. BP will buy 49 per cent stake in the firm's 1,400 petrol pumps and aviation fuel selling facilities at 31 airports for another Rs 7,000 crore.

The twin deals along with deleveraging of telecom arm Jio's infrastructure assets will help Reliance become "a zero-net debt company within the next 18 months, that is by March 31, 2021", Ambani said at the company's annual general meeting (AGM). Ambani also announced roll out of the fiber-based fixed-line broadband services from September 5, offering internet speed of at least 100 mbps and free voice calls for life for as low as Rs 700 per month.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)