Oil-telecom-to-retail conglomerate Reliance Industries on July 23 hit another milestone in terms of its market value on the back of consistent buying.
The stock price touched a fresh intraday record high of Rs 2,078.90 on July 23, rising 139.6 percent from its March 23’s low point.
It ended at fresh record high of Rs 2,060.65, up 2.82 percent, with volumes of 13.79 lakh shares on the BSE and market-capitalisation of Rs 13,06,329.39 crore. The stock has gained 135 percent in last four months.
On the National Stock Exchange, it climbed 2.68 percent to close at Rs 2,057.80, with volumes of 2.69 crore equity shares.
The billionaire Mukesh Ambani-owned company is bigger than HDFC Group, and top four private banks in terms of market value.
The total market-capitalisation of listed HDFC Group companies stood at Rs 11,24,715.95 crore while top four private banks’ – HDFC Bank, ICICI Bank, Kotak Mahindra Bank and Axis Bank – market value is at Rs 12,76,102.99 crore today.
A similar trend was seen in Reliance Industries Partly Paid up shares, which settled at Rs 1,180.95 on the BSE, up 6.82 percent over previous closing, and 136 percent higher than their intrinsic value.
Intrinsic value is the one-fourth price of Reliance Industries (Rs 2,004.10 / 4 = Rs 501) as investors paid only first instalment of Rs 314.25 which 25 percent of Rights issue price of Rs 1,257 per share. The second instalment of Rs 314.25 will be paid in May 2021 and last instalment of Rs 628.50 in November 2021.
The stock has been on the rise since the company announced investments from various marquee tech giants and private equity investors into Jio Platforms. It has raised more than Rs 1.5 lakh crore through stake sale in Jio since April 22.
This helped the company achieve its net debt free target much before its own timeline of March 2021, which was the key trigger.
Investment of Rs 33,737 crore by Google for 7.7 percent stake in Jio Platforms was announced recently at the AGM, while Rs 43,574 crore investment by Facebook for 9.9 percent stake in Jio was made public on April 22.
“Reliance Industries is India’s largest company with a dominant presence in Refining, Petrochemicals, Telecom and Retail businesses. Telecom business to witness robust growth over next few years due to tariff hikes and shift of subscribers from Vodafone Idea to other telecom players,” Angel Broking said.
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