Shares of Reliance Industries (RIL) rose nearly 3 per cent in intraday trade on the Bombay Stock Exchange on Wednesday after reports that the company's talks to sell a stake in its oil to chemicals business to Saudi Aramco have gathered pace in the last few weeks.
Saudi Aramco's officials and bankers are working on the due diligence process this month, Bloomberg quoted sources as saying. Mukesh Ambani-led firm is reportedly planning to ink a binding agreement before the next annual shareholders meeting, which is slated to take place before end of September this year.
RIL share price gained as much as 2.65 per cent to hit an intraday high of Rs 1,505 apiece on the Bombay Stock Exchange. The stock has opened higher at Rs 1,475.55 against previous closing price of Rs 1,466.10.
In a similar trend, RIL shares were trading 2.26 per cent higher at Rs 1,500.60 on the National Stock Exchange (NSE). During the day's trade, the stock has touched an intraday high of Rs 1,505 againt previous closing price of Rs 1,467.40.
In August last year, Mukesh Ambani had announced initial agreements to sell a 20 per cent stake in the oil-to-chemical business to the Saudi national oil company to cut its debt. RIL's oil-to-chemical division has been valued at $75 billion. The deal will see Reliance buy up to 500,000 barrels a day of crude oil from Aramco.
Shares of RIL group entities namely Hathway Cable & Datacom, Den Networks and Network18 were also trading higher between 5-10 per cent. The stock were in upbeat mood for the second straight session after RIL announced to consolidate its media and distribution business.
Reliance Industries on Monday said it would restructure its media and distribution business by merging three group entities - Television 18 Broadcast, Hathway Cable and Datacom and Den Networks - into Network18 Media and Investments.
Meanwhile, the benchmark index BSE Sensex was trading 339 points, or 0.83 per cent, higher at 41,233.
By Chitranjan Kumar