RIL share rises over 2% as firm hives off oil-to-chemical business ahead of Aramco deal
BusinessToday.In February 23, 2021
Reliance Industries Ltd (RIL) share rose over 2% in early trade after the Mukesh Ambani-led conglomerate announced the demerger of its O2C (oil-to-chemical) business into a wholly owned subsidiary. The large cap stock touched an intraday high of Rs 2,049.95, rising 2.12% on BSE. The share trades higher than 20 day, 50 day, 100 day and 200 day moving averages but lower than 5 day moving averages.
The large cap stock has gained 37.49% in one year and risen 2.91% since the beginning of this year. Market cap of the firm rose to Rs 12.95 lakh crore on BSE. The company has sought shareholder and creditors' approval on plan to demerge its O2C business.
"Reorganisation will be beneficial to all stakeholders of RIL -- management control of O2C continues with RIL, existing O2C operating team moves with the transfer of business, no dilution of earnings or any restriction on cash flows, and retaining of its international and domestic AAA credit ratings," RIL said.
RIL has said the independent growth of the company will enable the focused approach towards opportunities across the O2C value chain.
It will enhance efficiencies through self-sustaining capital structure and a dedicated management team, it said, adding the demerger will facilitate value creation through strategic partnerships and attract dedicated pools of investors.