On June 19, 2020, Reliance Industries Ltd (RIL) became the first Indian company to reach a market capitalisation of Rs 11 trillion, as the company was valued at Rs 11.15 trillion. With this, RIL accounts for nearly 9% of the country’s total m-cap of Rs 138 trillion. Its stock on Bombay stock exchange (BSE) was record high at Rs 1,738.95. Notably the company’s share doubled since mid-March 2020.
- In dollar terms, RIL’s m-cap translates into $155 billion, making it the 54th largest company globally.
- If the value of RIL’s partly paid shares of Rs 67,500 crore is added, then the company’s m-cap adds up to almost Rs 11.83 trillion.
- Importantly, RIL is the most valued firm followed by Tata Consultancy Services (TCS), which is valued at Rs 7.7 trillion.
Reason behind this Jump
The reason behind this jump is the net-debt free status of RIL which has been attained through the fundraising to the tune of Rs 115,693.95 crore through the sale of 24.71% stake in its digital services arm, Jio Platforms Ltd (JPL), to 10 global investors in 11 investments.
- RIL also raised Rs 53,124.20 crore through rights issue. Its net debt was at ₹1.61 trillion as of 31 March, 2020.
- RIL first hit Rs 1 trillion in market cap in August 2005. It took the company 12 years to reach Rs 5 trillion in market cap in July 2017.
Mukesh Ambani became 9th richest in the world: Bloomberg Billionaires Index
The net worth of Mukesh Ambani, chairman has jumped to $64.5 billion, making him the only Asian tycoon in the exclusive club of the world’s top 10 richest people, according to the Bloomberg Billionaires Index. He overtook Larry Ellison of Oracle Corp. and France’s Francoise Bettencourt Meyers, the wealthiest woman, to reach the No. 9 spot.
Founder Chairman– Dhirubhai Ambani
Chairman & Managing Director (CMD)- Mukesh Dhirubhai Ambani
Headquarter– Mumbai, Maharashtra