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Reliance Industries becomes first Indian company to hit $200 billion market cap

The market cap of RIL rose to Rs 14.70 lakh crore, while the market value of its partly paid rights shares increased to Rs 58,800 crore, resulting in a combined market capitalisation of Rs 15.28 lakh crore ($ 208 billion)

Chitranjan Kumar | September 10, 2020 | Updated 17:30 IST
Reliance Industries becomes first Indian company to hit $200 billion market cap
Mukesh Ambani-led Reliance Industries' market capitalisation crossed $200 billion on Thursday

Billionaire Mukesh Ambani-led Reliance Industries on Thursday became the first Indian company to hit a market capitalisation of $200 billion, helped by strong rally in its share price. The RIL share price has gained 170 per cent since mid-March on the back of surge in investment in its retail and telecom business.

On Thursday, shares of oil-to-telecom conglomerate ended 7.1 per cent higher at Rs 2,314.65, against previous closing price of Rs 2161.25, on the Bombay Stock Exchange. During the day's trade, the RIL shares gained as much as 8.4 per cent to hit a fresh all-time high of Rs 2,343.90. On the volume front, there was surge in volume trade as 24.50 lakh shares changed hands over the counter as compared to two-week average volume of 6.85 lakh shares.

At intra-day high of Rs 2,344.90, the market cap of RIL rose to Rs 14.70 lakh crore, while the market value of its partly paid rights shares increased to Rs 58,800 crore, resulting in a combined market capitalisation of Rs 15.28 lakh crore ($ 208 billion). This is nearly twice the market cap of India's second most valued firm Tata Consultancy Services (TCS), which is valued at $119 billion.

Also Read: RIL share hits all-time high, market cap above Rs 14 lakh cr for second day

The large cap stock hit a 52-week low of Rs 867 on March 23, 2020. Since then, the stock has gained 170 per cent on the BSE.

RIL shares gained momentum on Thursday after American private equity firm Silver Lake announced it would invest Rs 7,500 crore ($1 billion) in Mukesh Ambani's Reliance Retail Ltd, a Reliance Industries Ltd subsidiary, for a 1.75 per cent equity stake on a fully diluted basis.  This is the second investment by Silver Lake in an RIL subsidiary after the infusion of Rs 10,200 crore in Jio Platforms Ltd earlier this year.

Also Read: Silver Lake invests Rs 7,500 cr in Mukesh Ambani's Reliance Retail for 1.75% stake

As per reports, US-based PE investors KKR and Co., Mubadala Investment Co. and Abu Dhabi Investment Authority are also in talks to invest in retail arm of Reliance Industries. Last month, RIL had acquired the retail business of Kishore Biyani-led Future Group for Rs 24,713 crore.

RIL has already raised Rs 1,52,056 crore from mega investments in telecom arm Jio Platforms and another Rs 53,124.20 crore through a rights issue.

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