On 28 Nov’19, Reliance Industries Limited became the first Indian Company to have a market capitalization of Rs 10 Lakh crore. Not just that, Mukesh Ambani‘s RIL is now the world’s 66th most valued company ahead of entities such as BP and Netflix.
The RIL stock continued to pick-up on Tuesday and rose 0.65 percent and closed at Rs 1,579.95 on the BSE as it crossed the milestone. This also affected Mukesh Ambani’s net worth which rose and is now estimated to be more than $60.7 billion.
As reported by Bloomberg, the company’s market value jumped to Rs 10 lakh crore from Rs 9 lakh crore in just 25 trading days.
The reasons that led to an increase in RIL‘s market cap are numerous. Some of them being, an expected rise in gross refining margins, strong finances of its consumer businesses, the launch of the home broadband business, hike in telecom tariffs, lower capital expenditure intensity, strong growth guidance and an intention to not only deleverage balance sheet but also reward shareholders at an accelerated pace.
Other initiatives announced by Ambani, that include plans to bring down the net debt levels to zero by March 2021, and the move to create a holding company on the lines of Alibaba or Alphabet Inc, have also been well received by investors.
Recently, Reliance Jio announced the commercial operation of its fiber-to-the-home business. It aspires to reach two crore households and 1.5 crore business establishment in the next 12-18 months.
Ambani also unveiled his plans to use the synergies of the digital business of Jio with retail and take on Flipkart and Amazon in the online space. In fact, the company unveiled plans of a virtual reality powered shopping experience.