Reliance Industries shares today hit an all-time high today after the company's telecom arm Jio Platforms said it offered a stake to the sixth global investor in six weeks. Abu Dhabi based sovereign investor Mubadala will be investing Rs 9,093 crore for nearly 2 percent stake in Jio Platforms. With this deal, Jio Platforms has raised Rs 87,655.35 crore in last 6 weeks.

Speaking to CNBC-TV18, market expert Prakash Diwan said, “Till June 12, after which the partly paid shares would come into being and people have an option to trade on that instrument as well, buying will continue for people who have missed out or probably thought that the allocation is still inadequate compared to the weightage that the stock is getting into the index. So, if the weightage crosses 14-15 percent, there is no reason why the market cap should come down below the Rs 10 lakh crore mark.”

Diwan further added that he does not believe this to be the end of the series of investments that have come into Jio Platforms.

“If a sovereign wealth fund has – and Abu Dhabi fund has done it for the first time, it is their first investment in India, which also means that in a crisis like this, in a situation like this where capital allocation is going to be weighted, you have sovereign funds looking at it. The big trigger is the unlocking of value or some way of divestment of the OMC business. If that were to happen, you are looking at a very different re-rating of the company as a whole. So, I would wait for some more triggers before calling it a top; it has the room to go up for sure for some more time,” he said.

Disclosure:

Reliance Industries, the parent company of Reliance Jio, owns Network 18 that publishes CNBCTV18.com.

First Published:Jun 5, 2020 5:31 PM IST