Reliance Industries shares zoom 6% today; here's why

Shares of Reliance Industries Limited (RIL) surged 6 per cent to hit an intraday high of Rs 2,502.80 on BSE after the company announced that it will implement a scheme to repurpose and restructure its gasification assets.
 
“The Board of Reliance Industries Limited has today decided to implement a scheme of arrangement to transfer gasification undertaking into a wholly-owned subsidiary,” it said.
 
The stock ended 6.10 per cent higher at Rs 2,494.40 against the previous close of Rs 2,350.90. Market cap of the firm rose to Rs 15,82,283.51 crore.
 
The shares stand higher than 5 day, 100 day and 200 day moving averages but lower than 20 day and 50 day moving averages. The large-cap stock has gained 28 per cent in the last one year and has risen 26 per cent since the beginning of this year.
 
The gasification project at Jamnagar was set to ensure production of syngas that would meet the energy requirements as refinery off-gases are repurposed for the Refinery Off Gas Cracker (ROGC), ensuring production of olefins at competitive operating costs. Syngas also helps to keep energy costs stable, and is further used to produce hydrogen for consumption in the Jamnagar refinery.
 
The company said that the risk and returns associated with the gasifier assets are likely to be different from the other businesses of the conglomerate. RIL expects to attract a different pool of investors and strategic partners for the gasification assets.
 
On Monday, the shares of Mukesh Ambani-led Reliance Industries Ltd (RIL) tanked 4.69 per cent to hit an intraday low of Rs 2,356.75 on BSE after the company said that it has decided with Saudi Aramco to re-evaluate the latter's proposal to acquire a stake in the Indian conglomerate.
 
RIL said in a statement that it has withdrawn its application with the National Company Law Tribunal (NCLT) for segregating its oil-to-chemicals (O2C) business, after arriving at a mutual decision with Saudi Aramco to reassess the oil giant's proposed around $15 billion investment in RIL's O2C business.
 
In August 2019, RIL and Aramco signed a letter of intent for the oil giant to potentially acquire a 20 per cent stake in the Indian conglomerate, but the deal was delayed as oil prices and demand crashed last year due to the pandemic.
 
JP Morgan said that the recent announcement to reevaluate the deal with Saudi Aramco pertaining to the O2C business will have limited financial impact. The brokerage house has a 'neutral' rating on the stock with a target price of Rs 2,575 per share.