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    How Reliance Industries turned Rs 10,000 investment in 1977 to Rs 3.1 crore in 2019

    How Reliance Industries turned Rs 10,000 investment in 1977 to Rs 3.1 crore in 2019

    How Reliance Industries turned Rs 10,000 investment in 1977 to Rs 3.1 crore in 2019
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    By Pranati Deva   IST (Updated)

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    Listed in 1977, an investment of Rs 10,000 in the company during its IPO, would have been worth Rs 2.1 crore today.

    Reliance Industries Ltd (RIL) has not only been a safe bet for the investors but has also seen a very consistent rise over the years. The stock has been on a high, with the stock hitting its 52-week high of to Rs 1,571.85 for a second consecutive session on Wednesday to cross-market capitalisation of Rs 9.5 lakh crore.
    Its current market capitalisation stands at 9.9 lakh crore.
    Listed in 1977, an investment of Rs 10,000 in the company during its IPO, would have been worth Rs 2.1 crore today.
    Mukesh Ambani, in the company's 40th AGM, said that an investment of Rs 1,000 in RIL shares in 1977 has turned to over Rs 16.50 lakh in 2017. That roughly translates to an investment of Rs 10,000 would have given a return of Rs 1.6 crore.
    Since 2017, the company has risen 96 percent from around Rs 800 in 2017 to Rs 1,570 currently. If the Rs 1.6 crore (returned from the company) was invested back in the company in 2017, it would have now turned to Rs 3.1 crore.
    The market capitalisation has multiplied from Rs 10 crore in 1977 to over Rs 9.5 lakh crore or 95,000 times. The stock has gained over 35 percent just this year and 8 percent in just 2 days.
    According to a Bloomberg report, the recent rise in the company's stock price has led it to eclipse BP Plc to break into an elite club of energy supermajors. The Indian conglomerate’s market capitalisation was about $133 billion, overtaking the British energy giant’s $132 billion value at the close of trading on Tuesday.
    For the quarter ended September, RIL reported an 18.3 percent YoY rise in consolidated net profit at Rs 11,262 crore, while its net revenue grew by 4.8 percent to Rs 163,854 crore driven by robust growth in retail and digital services businesses.
    While the bulk of its revenue comes from the energy business, it also has made wide strides in the telecom and digital service industries with Reliance Jio. It is also expanding its retail business to take on Amazon and Walmart.
    It has expanded its portfolio majorly from a polyester business to refining, including manufacturing of refined petroleum products, and petrochemicals, including manufacturing of basic chemicals, fertilizers and nitrogen compounds, plastic and synthetic rubber in primary forms. It recently also forayed in the telecom business, putting immense pressure on all the other telcos.
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