How RIL Shares Have Performed — From AGM To AGM
Shares of Reliance Industries Ltd. touched an all-time high a couple of days before its annual general meeting.
The stock rose 4% on Monday to Rs 1,947.70—a record. The shares have rebounded more than double since a low in March as Jio Platforms Ltd., the company’s digital arm, netted more than Rs 1.18 lakh crore in a fundraising blitz. On Tuesday, however, it closed 1% lower, tracking the benchmark Nifty 50 that dropped 1.81%.
The stock has rallied more than 50% since the last RIL AGM on Aug. 12, 2019, compared with a 2.6% drop in the Nifty 50 Index during the period.
Mukesh Ambani will face the shareholders at RIL’s 43rd AGM on July 15 through video conferencing. And when he addresses them, Asia’s richest man would have met most of his promises.
The oil-to-telecom conglomerate technically turned net-debt-free months ahead of its March 2021 target, though the actual impact on the balance sheet will be visible next fiscal. That came mainly on the back of a flurry of deals for Jio Platforms and a partnership with BP Plc. The company also announced its largest-ever rights issue in nearly three decades as it intends to raise Rs 53,125 crore by issuing new shares.
And as investors lauded the company’s decisions, RIL earlier this month became India’s most valued firm with a market cap of more than Rs 12 lakh crore. That’s followed by Tata Consultancy Services Ltd. and HDFC Bank Ltd.
RIL has generated significant wealth for its more than 26 lakh stakeholders since March. The rally also made Ambani the world’s sixth-richest person. His net worth is estimated at $72.4 billion, according to the Bloomberg Billionaires Index, surpassing the likes of Larry Page, Warren Buffett and Elon Musk, among others.
Reliance Industries has been re-rated in the last one year after it set up Jio Platforms. According to the company, asset-light technology platforms created more value over the last decade than aggregate market of energy companies in the S&P.
The successful stake sale in Jio Platforms and the valuation it received has pushed the parent’s price-to-equity to the highest in eight months.