Reliance Industries Limited (RIL) became the first Indian firm to hit market cap of Rs 16 lakh crore in early trade today. The stock achieved the feat after it hit all-time high of Rs 2,368 in an otherwise flat market. Share price of RIL gained 2.2% to Rs 2,368 against previous close of Rs 2,317 on BSE.
The large cap stock has gained 1.57% in last two days. This is the first session that market cap of RIL crossed Rs 16 lakh crore making it the most valuable company on Indian bourses.
Later, the stock was trading at Rs 2336, 0.81% higher on BSE. This brought its market cap to Rs 15.80 lakh crore.
The large cap stock hit a fresh 52-week low of Rs 867 on March 23, 2020. Since then, the stock has gained 173.12% on BSE.
Total 4.41 lakh shares changed hands on BSE amounting to turnover of Rs 103.51 crore.
RIL stock price has gained 8.27% in one week and 10.69% in one month. The stock has gained 54.55% since the beginning of this year and risen 93.26% during last one year. RIL stock trades higher than its 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
RIL stock has scaled new highs after leading tech investor Silver Lake Partners (SLP) said 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.
The investment values Reliance Retail at a pre-money equity value of Rs 4.21 lakh crore. The investment by Silver Lake marked big boost for RIL, which last month acquired Kishore Biyani's Future Group for Rs 24,713 crore.
The stock also gained on a Bloomberg report that Reliance Industries reportedly has offered a 40 per cent stake in its retail arm worth about $20 billion to Amazon.com.
"Amazon has held discussions about investing in the conglomerate's Reliance Retail Ventures Ltd unit and has expressed interest in negotiating a potential transaction," the report said.
The report went on to say that Reliance was "willing to sell as much as a 40 per cent stake in the subsidiary to Amazon" and the deal size at $20 billion would be the biggest ever in India."
However, Reliance termed the report as speculative.
Meanwhile, the 30-scrip BSE benchmark Sensex traded 50 points higher at 39,095 and NSE Nifty 50 gained 12 points to 11,543.