Continuing its rally, shares of Reliance Industries Ltd on Thursday closed over 7 per cent higher, helping its market valuation cross the $200 billion mark and become the first domestic firm to achieve the milestone.
During the day, its market valuation jumped to Rs 15.84 trillion ($215.75 billion) on the BSE.
The stock of the country’s most valuable firm rose by 7.10 per cent to close at Rs 2,314.65 ($31.56) on the BSE. During the day, it jumped 8.45 per cent to a record high of Rs 2,343.90.
On the NSE, it gained 7.29 per cent to close at Rs 2,319 after hitting a lifetime high of Rs 2,344.95, up 8.49 per cent during the day.
In the previous session too, it had closed with nearly 3 per cent gain.
At close of trade on the BSE, RIL’s market valuation rose to Rs 14.67 trillion ($199.74 billion).
“RIL displayed its dominance in the index by crossing the MCAP of Rs 15 trillion today,” said S Ranganathan, Head of Research at LKP Securities.
During the day media reports surfaced that Reliance Industries is offering to sell a roughly $20 billion stake in its retail business to Amazon.com Inc.
Traders said the uptick in the counter was largely after reports surfaced that a number of investors are likely to invest in the retail arm of Reliance Industries.
On Wednesday, it was announced that US private equity firm Silver Lake Partners would buy 1.75 per cent stake in RIL’s retail arm for Rs 75 billion ($1 billion).
This will mark the second billion-dollar investment by Silver Lake in an RIL subsidiary after the $1.35 billion investment in Jio Platforms announced earlier this year.
After monetising Jio Platforms, which houses the firm’s telecom arm and digital ventures, the richest Indian Mukesh Ambani is roping in investors in the retail business.
All the 13 investors in Jio Platforms have been offered a chance to explore investing in the retail unit, sources privy to the development said adding KKR may be next in line to make an investment.
Reliance Retail Limited operates India’s largest and most profitable retail business spanning supermarkets, consumer electronics chain stores, cash and carry wholesale business, fast-fashion outlets, and online grocery store JioMart.
Gain in Reliance Industries was also instrumental in the equity market rally, with the 30-share BSE Sensex closing 646.40 points or 1.69 per cent higher.