The oil to telecom major Reliance Industries Ltd's (RIL) market capitalisation crossed Rs 10 lakh crore after the shares rallied more than 4 percent fuelled by frenzied investor buying as they remain upbeat over positive developments on company’s debt reduction plan.

Share Market Live

NSE

The stock gained 4.80 percent to touch intraday high of Rs 1,579.70 after the company announced that US-based private equity firm Vista Equity Partners will buy a 2.32 percent stake in Jio Platforms for Rs 11,367 crore.

RIL shares have rallied 80.4 percent since its 52-week low of Rs 875.70 on March 23. The stock has risen 4.64 percent YTD (Year-To-Date).

The latest round of investment values Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore. This amounts to around 50 percent of total market cap of the RIL.

This is the third high profile investment in Jio Platform in less than a month. Facebook had announced an investment of Rs 43,574 crore ($5.7 billion) for a 9.99 percent stake in Jio Platforms on April 22.

On May 4, private equity firm Silver Lake Partners announced investment of Rs 5,655.75 crore for 1.15 percent stake in Reliance Jio Platforms.

“With these investments, Reliance Jio Platforms has succeeded in bringing in marquee global investors into India buoying the private equity play even in tough times. This will also reinforce the move towards Reliance becoming a zero net debt company soon,” said Deepak Jasani, head, retail research, HDFC Securities.

On Friday, RIL shares ended 3.62 percent higher at Rs 1561.80 with a market cap of Rs 9,90,088.02 crore.

(Disclaimer:

Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd)

First Published:May 8, 2020 8:24 PM IST