(Image source from: businesstoday.in)
On Thursday, with an increase in stocks, Mukesh Ambani’s led Reliance Industries hit a 10 lakh crore mark in the market. This is the first-ever Indian company to fair so well. The stock that was 1% at 1,581.60 went up by 40% this year.
Mukesh Ambani plans to bring down the company’s net debt to zero in 18 months through a few measures one of which was the stake sale in the oil to chemicals business to Saudi Aramco and in the next few weeks its telecom arm Jio announced an increase in tariffs.
In Jamnagar, Gujarat, the RIL operates the world’s biggest oil refining complex. Based on RIL’s announcement last month, they had decided to invest Rs 100 lakh crore digital services so that a potential investor could invest to reduce its debt in JIO.
RIL will have the authority to convert Rs 108 lakh crore investment into equity and invest new funds in Jio. By 2020 they aim at making the telecom venture debt-free.
As per BofAML, last month it had predicted that RIL has the potential to be the first Indian Company to achieve a market capitalization of $200 billion with its new commerce and broadband business.
In August, RIL declared European oil to get a 49% stake in the Indian conglomerate’s fuel retail business.
Edelweiss Securities says RIL is working on achieving its target of zero net debt, the stock can be bought at a target price of Rs1,716/share.
By Neha Makhija