Shares of Reliance Industries Ltd (RIL) rose two percent on Monday, hitting an all-time high of Rs 2,724.70 after the conglomerate announced two acquisitions over the weekend. RIL was also the biggest contributor to Nifty gains today, offsetting losses from TCS and Nifty IT.

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This came after the four percent gains on Friday, after RIL touched a market capitalisation of Rs 18 lakh crore, cementing the conglomerate's position as India's most valuable company.

The wholly-owned subsidiary of RIL - Reliance New Energy Solar Ltd (RNESL) -- acquired REC Solar Holdings from China National Bluestar (Group) Co Ltd, for an enterprise value of $771 million.

Norway-based REC specialises in ]long-life solar cells and panels for clean and affordable solar power. It has three manufacturing facilities - two in Norway for making solar-grade polysilicon and one in Singapore making photovoltaic cells and modules.

This acquisition will help RIL with a ready global platform and the opportunity to expand and grow in key green energy markets globally, including in the US, Europe, Australia and elsewhere in Asia.

RNESL is also planning to acquire a 40 percent stake in renewables firm Sterling and Wilson Solar through a combination of preferential allotment, share sale by the promoter and open offer.

RNESL will pay Rs 1,790 crore for the preferential allotment and the purchase of shares from the promoter, totalling 22.16 percent.

This second acquisition is a part of RIL’s initiatives to make India a global leader in green energy.

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Morgan Stanley raises target price on RIL, here’s why

While sharply raising its target price on RIL's stock last week, Morgan Stanley had pointed out that value is being attributed to the new energy business.

At 9:25 am, shares of RIL were up 1.5 percent at Rs 2,711.05, backed by hefty trading volumes.

The stock has surged 11 percent in the past month as compared to the benchmark Nifty50's three percent rise.

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First Published:Oct 11, 2021 9:54 AM IST