AGM Impact: Reliance Industries share rises 12%, 10-year biggest gain

AGM Impact: Reliance Industries share rises 12%, 10-year biggest gain

Chairman of Reliance Industries Mukesh Ambani with wife Neeta.

  • Reliance’s market cap rose sharply to Rs 84000 crore to Rs 8.21 lakh crore

  • Mukesh Ambani, chairman of Reliance’s AGM, made big announcements, so the stock rose

  • Saudi Aramco to buy 20% stake in Reliance’s refinery-chemical business for Rs 1.06 lakh crore

Mumbai. In contrast to the stock market crash, Reliance Industries stock rose 12% to Rs 1,302.50 on Tuesday. This is the biggest single-day since 14 June 2009. With this increase, the market cap of Reliance on BSE rose by Rs 84,000 crore to over Rs 8.21 lakh crore. 7.37 lakh crore at the closing of the stock market on Friday. The market was closed on Monday due to Bakrid.

Stocks climbed with AGM announcements: At
the 42nd AGM of analyst Reliance, the company’s chairman and MD Mukesh Ambani made several important announcements on Monday. According to analysts, buying in Reliance shares has increased due to Ambani’s announcements.
 

4 big announcements of Reliance
1. Saudi Aramco will buy 20% stake in Reliance’s refinery-chemical business for Rs 1.06 lakh crore. This will be the largest foreign investment in Reliance so far. 
2. Reliance Fuel will sell 49% stake in the retail business to a UK-based BP company for Rs 7,000 crore. Under the joint venture with BP, Reliance will increase the number of petrol pumps from the existing 1,400 to 5,500 in the next 5 years. 
3. Reliance will repay its debt from the proceeds from the sale of shares to Aramco and BP. The company aims to make the company debt free by March 2021. 
4. Reliance Retail and Jio will be listed on the stock market in five years. Mukesh Ambani assured the shareholders that they would continue to get higher dividends, bonuses. 

Reliance’s 5 records
October 2007:
 Became the country’s first company with a market cap of $ 100 billion 

July 2018: After 11 years, again achieved a valuation of $ 100 billion 
August 2018: Became the first company in the country with a market cap of Rs 8 lakh crore 
January 2019: Became the first private company in the country with a profit of 10000 crores

Tata Group’s flagship company TCS , the largest company in TCS market cap, has a market cap of Rs 8.37 lakh crore. Over the past year, Reliance and TCS have outperformed each other several times in the market cap. The two now vie to become the first Indian company with a market cap of Rs 9 lakh crore

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