RIL share price hits all-time high, becomes first Indian firm to cross Rs 11.50 lakh cr market cap

Reliance Industries Ltd (RIL) share price rose to its all-time high in early trade today after the Mukesh Ambani-led conglomerate launched its video conferencing platform JioMeet to take on the likes of Zoom, Google Meet, and Microsoft Teams.

JioMeet app can support as many as 100 participants in a single video call. No codes or invites will be needed for the call to begin. The call will be free of cost. Also, the free call can be done uninterruptedly for up to 24 hours.

Another factor taking the stock to all-time high is the firm attracting 12 investments in 11 weeks raising  Rs 1,17, 587.5 crore from leading global investors. The stock gained  up to 3.94% or Rs 70.5 today, a trading session after Intel Capital, investment arm of Intel Corporation said it would invest Rs 1,894.50 crore in Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore.

That led the market cap of RIL to climb to Rs 11.74 lakh crore in afternoon session. The stock hit all time high of Rs 1,858 today against previous close of Rs 1787.50 on BSE. On Friday, the stock closed flat compared to opening of Rs 1,781.

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Reliance Industries share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

RIL stock price has risen 17.13% in one month and 22.28% since the beginning of this year.  It has gained 46.63% in a year.

The share hit its 52 week low of Rs 867.82 on March 23, 2020.

Intel Capital to pump in Rs 1,894.5 cr in Jio Platforms; 12th investment in 11 weeks

Jyoti Roy, DVP Equity Strategist at Angel Broking said, "We are positive on Reliance Industries from a long-term perspective as we believe that the digital and retail business will be key growth drivers for the company going forward. Potential listing of the digital and retail business over the next 3-5 years would also lead to significant value unlocking for shareholders in the long run. We also expect the hydrocarbon business to recover in the second half of the year as demand for petro products normalizes. Given no significant capex outlay in the near future, the hydrocarbon segment should generate free cash flows which can be used to fund expansion in other businesses. "

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Jio Platforms has raised Rs 1,17, 587.5 crore from leading global investors including Intel Capital, PIF, Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG and L Catterton, since April 2020. Reliance has sold 25.1% stake to 12 investors in mere 11 weeks till date.

On Thursday, RIL announced Intel Capital would invest in its digital arm. Intel Capital's investment will translate into a 0.39% equity stake in Jio Platforms on a fully diluted basis.

Additionally, RIL said it plans to increase its network of aviation fuel stations by 50% as it looks to capture greater market share in the business currently controlled by public sector oil retailing firms.

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In its latest annual report, RIL said the double-digit growth observed over 52 consecutive months might have been stalled due to the COVID-19 pandemic, but India continues to be one of the fastest growing aviation markets in the world for the fifth consecutive year.

By Aseem Thapliyal