Reliance Industries share price rose in early trade today on report that Intel Capital, investment arm of Intel Corporation, would invest Rs 1,894.50 crore in Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore. Reliance Industries stock rose 1.4% to Rs 1,785 against the previous close of Rs 1,760 on BSE.
The large cap stock has gained 4.33% in last 3 days. RIL stock price has risen 14.79% in one month and 16.94% since the beginning of this year. Reliance Industries share trades higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
With this investment, Jio Platforms has raised Rs 1,17, 587.5 crore from leading global investors including PIF, Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG and L Catterton, since April 2020.
Reliance has sold 25.1% stake to 12 investors in mere 11 weeks till date.
Intel Capital's investment will translate into a 0.39% equity stake in Jio Platforms on a fully diluted basis.
"Intel Capital invests globally in innovative companies with a focus on disruptive technology areas like cloud computing, artificial intelligence and 5G - opportunities where Jio is also innovating and investing for growth," a company statement said. Intel has operated in India for more than two decades and employs thousands of employees in the country.
Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said Intel was a "true industry leader", which was working towards creating world-changing technology and innovations. "Intel Capital has an outstanding record of being a valuable partner for leading technology companies globally. We are therefore excited to work together with Intel to advance India's capabilities in cutting-edge technologies that will empower all sectors of our economy and improve the quality of life of 1.3 billion Indians," he said.
Jyoti Roy, DVP Equity Strategist at Angel Broking said, "We are positive on Reliance Industries from a long-term perspective as we believe that the digital and retail business will be key growth drivers for the company going forward. Potential listing of the digital and retail business over the next 3-5 years would also lead to significant value unlocking for shareholders in the long run. We also expect the hydrocarbon business to recover in the second half of the year as demand for petro products normalizes. Given no significant capex outlay in the near future, the hydrocarbon segment should generate free cash flows which can be used to fund expansion in other businesses. "
Vinay Rajani- Technical Research Analyst at HDFC Securities said, "After few days of price consolidation, Reliance Industries stock has resumed its uptrend. The stock is on the verge of surpassing the previous all-time high placed at Rs 1804. Short term support for the stock is seen at Rs 1,695. Far support is seen at Rs 1625. Short Term and Medium Term Trend of the Stock is bullish. Upside resistances for the stock are seen at Rs 1844 and Rs 1983."