HomeMarket NewsStocks NewsRIL shares rally nearly 5%; market cap crosses Rs 11 lakh crore

RIL shares rally nearly 5%; market cap crosses Rs 11 lakh crore

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By Ankit Gohel  June 19, 2020, 5:12:27 PM IST (Updated)

RIL shares rally nearly 5%; market cap crosses Rs 11 lakh crore
The share price of Reliance Industries Ltd
(RIL) gained almost 5 percent to hit a record high on Friday as the company announced that it has become net debt-free after having raised Rs 1.68 lakh crore in less than two months.

The stock hit an all-time high of Rs 1,738.95 apiece on the BSE and the market cap touched Rs 11.02 lakh crore. At 2 pm, shares of RIL were trading 4.60 percent higher at Rs 1,732.50 per share.

Reliance Industries Chairman Mukesh Ambani said that his company had become net debt-free and that it had fulfilled its promise to shareholders ahead of the original schedule.

The oil-to-technology major has raised Rs 1.15 lakh crore through stake sales to multiple investors in its technology subsidiary Jio Platforms and around Rs 53,000 crore through a rights issue.

"Our net-debt was Rs 161,035 crore, as on 31st March 2020. With these investments, RIL has become net debt-free," Ambani said in the company statement to the stock exchanges.

On Thursday, RIL announced that Saudi Arabia's sovereign wealth fund PIF will invest Rs 11,367 crore in Jio Platforms for a 2.32 percent stake, making it the eleventh public investor in the company in less than two months.

Global brokerage firm Morgan Stanley has maintained 'Overweight' rating on RIL with a target price of Rs 1,801 per share as it believes that multiple catalysts are in play for the stock such as faster than expected deleveraging, improving demand and margin outlook.



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