RIL gains over 2 per cent on reports of IL&FS stake purchase

Mukesh Ambani-led Reliance Industries Ltdsurged by over 2 per cent in early trade on the BSE on Monday amid reports thatthe company may acquire the 23.87 per cent stake of Japan's Orix Corporation'sin Infrastructure Leasing and Finance Company (IL&FS) for USD 1.2 billion.

Bolstered by the media reports, shares ofthe country's most valued firm rose by 2.07 per cent to an early high of Rs 986apiece on the Bombay Stock Exchange.

Witnessing similar buying interest on theNational Stock Exchange, RIL's scrip jumped by 2.43 per cent to Rs 989.75 inthe morning session.

According to the reports, if the dealmaterialises, it will make the Reliance group the second largest investor inIL&FS after Life Insurance Corporation of India (LIC) and will pave the wayfor its entry into the financial services business.

Last month, IL&FS had completed thepurchase of a 45 per cent stake in Reliance's Model Economic Township (MET),comprising 10,000 acres of land, in Jhajjar, Haryana.

The significant gain in shares of RIL,which carries the maximum weight on the BSE benchmark Sensex, supported theupsurge in the key index, which was quoting 98.53 points higher at 17,799.44 at1020 hours.