For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

RIL Hits Record High As Analysts Cheer Its Restructuring Move

|

Rallying for the second consecutive trading session, shares of Reliance Industries Limited (RIL) rose as much as 2.4 percent on Tuesday to touch a new record high of Rs 1,470.90 on NSE.

 

Analysts welcomed the conglomerate's decision to separate its telecom arm from other digital businesses.

RIL Hits Record High As Analysts Cheer Its Restructuring Move
Reliance Industries: Quotes, News
BSE 2105.20BSE Quote15.8 (-0.75%)
NSE 2105.70NSE Quote15 (-0.71%)

On Friday, in a stock exchange filing, RIL informed of the board's decision to create a new digital platform holding company and debt restructuring.

Indian stock markets were closed on Monday on account of Diwali.

The decision comes in line with Chairman and MD Mukesh Ambani's recent annual general meeting (AGM) announcement that the conglomerate was planning to utilise the potential of its telecom and retail ventures (Reliance Retail) with partnerships and would also be listing the two businesses separately in the next five years.

Analysts expect the re-organised digital entity to have a valuation of $60-65 billion, making it more attractive for strategic investors. Moving Jio's non-core digital businesses to separate units would also help contain the telecom subsidiary's AGR (Adjusted Gross Revenue) linked license payments in the future.

In the exchange filing, RIL also said that it would invest Rs 1.08 lakh crore through a rights issue in the newly formed arm. The move is going to make Reliance Jio virtually net debt-free by 31 March 2020, with exception of spectrum-related liabilities, RIL said.

Company Search
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X