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Reliance Ind. Becomes First Indian Corporation To Cross ₹11.5 trillion MCap Mark

Reliance Industries Limited

Reliance Industries Limited (RIL) is an Indian multinational conglomerate company headquartered in Mumbai, Maharashtra. Reliance owns businesses across India engaged in energy, petrochemicals, textiles, natural resources, retail, and telecommunications.

Reliance is one of the most profitable companies in India, the largest publicly traded company in India by market capitalization, and the largest company in India as measured by revenue after recently surpassing the government-controlled Indian Oil Corporation. On 22 June 2020, Reliance Industries became the first Indian company to exceed US$150 billion in market capitalization after its market capitalization hit ₹11,43,667 crore on the BSE.

The company is ranked 106th on the Fortune Global 500 list of the world’s biggest corporations as of 2019. It is ranked 8th among the Top 250 Global Energy Companies by Platts as of 2016. Reliance continues to be India’s largest exporter, accounting for 8% of India’s total merchandise exports with a value of Rs 147,755 crore and access to markets in 108 countries. Reliance is responsible for almost 5% of the government of India’s total revenues from customs and excise duty. It is also the highest income tax payer in the private sector in India.

Shareholding

The number of shares of RIL are approx. 3.1 billion. The promoter group, the Ambani family, holds approx. 46.32% of the total shares whereas the remaining 53.68% shares are held by public shareholders, including FII and corporate bodies. Life Insurance Corporation of India is the largest non-promoter investor in the company, with 7.98% shareholding.

In January 2012, the company announced a buyback program to buy a maximum of 120 million shares for ₹104 billion (US$1.5 billion). By the end of January 2013, the company had bought back 46.2 million shares for ₹33.66 billion (US$470 million).

Listing

The company’s equity shares are listed on the National Stock Exchange of India Limited (NSE) and the BSE Limited. The Global Depository Receipts (GDRs) issued by the Company are listed on the Luxembourg Stock Exchange. It has issued approx. 56 million GDRs wherein each GDR is equivalent to two equity shares of the company. Approximately 3.46% of its total shares are listed on the Luxembourg Stock Exchange.

Its debt securities are listed at the Wholesale Debt Market (WDM) segment of the National Stock Exchange of India Limited (NSE).

It has received domestic credit ratings of AAA from CRISIL (S&P subsidiary) and Fitch. Moody’s and S&P have provided investment-grade ratings for the international debt of the company, as Baa2 positive outlook (local currency issuer rating) and BBB+ outlook respectively. On the 28th of December, 2017, RIL announced that it will be acquiring the wireless assets of Anil Ambani-led Reliance Communications for about ₹23,000 crores.

Major subsidiaries and associates

On 31 March 2013, the company had 158 subsidiary companies and 7 associate companies.

  • Jio Platforms Limited, essentially a technology company, is a majority-owned subsidiary of RIL. It is the result of a corporate restructuring announced in October 2019, resulting in all the digital initiatives and the telecommunication assets being housed under this new subsidiary.
  • Reliance Retail is the retail business wing of Reliance Industries. In March 2013, it had 1466 stores in India. It is the largest retailer in India. Many brands like Reliance Fresh, Reliance Footprint, Reliance Time Out, Reliance Digital, Reliance Wellness, Reliance Trends, Reliance Autozone, Reliance Super, Reliance Mart, Reliance iStore, Reliance Home Kitchens, Reliance Market (Cash n Carry) and Reliance Jewel come under the Reliance Retail brand.
  • Reliance Life Sciences works around medical, plant, and industrial biotechnology opportunities. It specializes in manufacturing, branding, and marketing Reliance Industries’ products in biopharmaceuticals, pharmaceuticals, clinical research services, regenerative medicine, molecular medicine, novel therapeutics, biofuels, plant biotechnology, and industrial biotechnology sectors of the medical business industry.
  • Reliance Institute of Life Sciences (RILS), established by the Dhirubhai Ambani Foundation, is an institution offering higher education in various fields of life sciences and related technologies.
  • Reliance Solar, the solar energy subsidiary of Reliance, was established to produce and retail solar energy systems primarily to remote and rural areas. It offers a range of products based on solar energy: solar lanterns, home lighting systems, street lighting systems, water purification systems, refrigeration systems, and solar air conditioners.

And 5 more operations and Special Economic Zone development.  In 2012–13, it earned 76% of its revenue from refining, 19% from petrochemicals, 2% from oil & gas and 3% from other segments.

Recent growth in the Stocks

  • The Reliance Industries’ market valuation rose by ₹40,508.8 crore to ₹11,73,677.35 crore at the close of trade on the BSE
  • The market heavyweight stock jumped 3.57% to close at ₹1,851.40 on the BSE. During the day, it rose by 3.94% to a record high of ₹1,858

Reliance Industries Limited on Monday added another feather to its cap as its market valuation crossed ₹11.5 lakh crore mark, the first by any domestic company.

The market heavyweight stock jumped 3.57% to close at ₹1,851.40 on the BSE. During the day, it rose by 3.94% to a record high of ₹1,858.

On the NSE, it gained 3.75% to settle at ₹1,855.

The company’s market valuation rose by ₹40,508.8 crore to ₹11,73,677.35 crore at close of trade on the BSE.

In terms of volume, 9.49 lakh shares of the company were traded on the BSE and over 2 crore on the NSE.

Gains in Reliance Industries’ shares were also instrumental in taking the BSE 30-share index higher by 465.86 points, or 1.29% to close at 36,487.28. 

Reliance Industries, the country’s most valued firm, last month became the first Indian company to cross the ₹11 lakh crore market valuation mark.

Shares of Reliance Industries on Friday rose by nearly 2% after announcement that Intel Capital will buy 0.39% stake in Jio Platforms.

The stock has gained over 22% this year so far.

Also Read : News Highlights From July 2020

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