Reliance Industries Limited on Monday became the first Indian company to achieve a market capitalization of $ 150 billion when the stock market started trading at a rapid pace.
Reliance Industries’ market capitalization rose by Rs 28,248.97 crore to Rs 11,43,667 crore ($ 150 billion) in the Bombay Stock Exchange on Monday.
The share price of the company, which holds a large weight in the Sensex of the Bombay Stock Exchange, rose 2.53 percent to a record high of Rs 1,804.10 in the initial period. At the National Stock Exchange, it rose 2.54 percent to an all-time high of Rs 1,804.20.
Reliance Industries Limited had earlier on Friday become the first Indian company to cross the market capitalization figure of Rs 11 lakh crore.
After the company’s chairman Mukesh Ambani announced that the company dealing with the oil-to-telecom sector has become completely debt-free, the company’s share in the market rose by more than six per cent and its market capitalization reached a figure of Rs 11 lakh crore.
“Within the short period of about 59 sessions, RIL had doubled the wealth of the shareholders especially during the time of the pandemic. RIL has become India’s first $150 billion company. In Indian currency, the valuation is more than Rs 11 lakh crores,” Gaurav Garg, Head of Research at CapitalVia Global Research Limited- Investment Advisor told Moneycontrol.
Mukesh Ambani said the company has raised Rs 1.69 lakh crore during the last two months through the rights issue and sale of partial stake to major global investors, after which the company became pure debt-free.
The company has raised a total of Rs 1.69 lakh crore by selling less than a quarter of its stake to various global investors and raising Rs 1.15 lakh crore through right issue and Rs 53,124.20 crore through rights issue. The company’s stock has climbed more than 19 percent so far this year.
Taken together with last year’s sale of 49 per cent stake in fuel retailing venture to BP Plc of UK for Rs 7,000 crore, the total fund raised is in excess of Rs 1.75 lakh crore, the company said.
As of March 31, 2020, Reliance Industries had a net debt of Rs 1,61,035 crore.
The company said, “With these investments, RIL has become net debt-free.”
On Thursday the company also said that it has sold a 2.32 per cent stake in its digital unit to Saudi Arabia’s Public Investment Fund (PIF) for Rs 11,367 crore.
Ambani had publicly announced the goal to make RIL debt-free during the company’s annual general meeting in August last year. The aim was to get there by March 31, 2021.
Mukesh Ambani, today became the ninth richest person among the top 10 richest people in the world.
On the Bloomberg Billionaires Index, the real-time net worth of Mukesh Ambani climbed to $64.5 billion, a rise of $4.18 billion compared to the previous day.
He has now surpassed Larry Ellison of Oracle Corp. and France’s Francoise Bettencourt Meyers, the wealthiest woman, to become the only Asain business tycoon to be a part of the exclusive club of the world’s top 10 richest people.