Mukesh Ambani-led Reliance Industries Ltd (RIL) today became the first Indian company to hit the Rs10 lakh crore in market cap. RIL shares have performed outstandingly in the market since the start of this year.
Investors were encouraged after Mukesh Ambani announced plans to cut the company’s net debt to zero in 18 months through measures including a stake sale in the oil-to-chemicals business to Saudi Aramco. Recently, its telecom arm Jio announced that it will increase duties in the next few weeks.
RIL operates the world’s biggest oil-refining complex in Jamnagar, Gujarat, which can process low-quality crude and turn it into higher-grade fuels, partly protecting it from volatility in prices.
Last month, RIL had announced that it would invest over Rs100 lakh crore to create a digital services company as it seeks to cut debt at Jio, potentially making way for the entry of a strategic investor.
Last month, BofAML in a report said that RIL can become the first Indian company to achieve a market capitalisation of $200 billion on the back of its new commerce venture and fixed broadband business.