Mukesh Ambani-led Reliance Industries becomes second Indian company to join $100 billion club after TCS
Mukesh Ambani-led Reliance Industries on Thursday became the second Indian company to enter the $100-billion club. Three months after Tata Consultancy Services Ltd.became India’s first information technology major to breach the $100-billion mark in market capitalisation, Reliance Industries’s market value crossed the milestone for the first time in the last 10 years today.
RIL has been able to scale $100 billion in market value despite the rupee depreciating 7.5 per cent against the US dollar.
Today’s gains increased Ambani’s wealth to more than $42 billion. India’s richest man owns close to 47 per cent in RIL—the owner of the world’s largest oil refining complex.
Reason for rally
The company’s share price witnessed a strong bull run since Reliance Jio Infocomm Ltd.’s started commercial services on September 5, 2016. The company’s market capitalisation has doubled since then. The figure stood at $49.3 billion as on September 2, 2016.
The experts say RIL’s aggressive growth plans for its digital and retail venture revealed in its 41st Annual General Meeting (AGM) on July 5 could be the reason behind the recent rally in RIL shares.
The brokerage firms expect RIL to report 45 per cent annual growth in its operating profit for the April-June quarter.