MUMBAI: Reliance Industries Ltd (RIL) created yet another record emerging as the first Indian company to cross Rs 8 lakh crore ($114 billion) market capitalisation.
On Thursday, the Mukesh Ambani-led RIL’s shares inched up 1.86 per cent to close at a record high of Rs 1,269.70 on BSE, elevating the oil-to-telecom company’s market cap to Rs 8.05 lakh crore. So far this year, RIL shares surged over 38 per cent. It may be noted that the company re-entered the $100 billion market cap club last month, notwithstanding the depreciating the rupee.
Thursday’s surge in scrip was triggered by TRAI’s data showing RIL’s telecom venture Reliance Jio (RJio) continued to add subscribers at a healthy pace. As per the TRAI data, RJio added 9.71 million users in June, taking its subscriber base to over 215 million. Consequently, its market share stood at 18.78 per cent. In July, RJio reported a profit of Rs 612 crore for the quarter ended June 2018, a 20 per cent growth over the previous quarter.
The rally also bumped up India’s richest man Ambani’s wealth to over $48 billion, according to Bloomberg Billionaires Index. Ambani holds about 47 per cent in RIL. Traders continued to load RIL shares on expectation of additional revenue from Relinace Jio GigaFiber, the telecom firm’s broadband service and Jio Phone 2. Investors are also penciling in better earnings in the coming quarters. As per estimates, RIL is likely to report a free cash flow of close to Rs 6,000 crore this fiscal.