Shares of India’s top valued firm Reliance Industries Ltd (RIL) were trading nearly 6% higher at ₹2,491 apiece on the BSE in Thursday’s trading session as the heavyweight supported markets as the top gainer and helped in the rebound of indices in afternoon deals.
“RIL stock jumped after the company’s board resolved to adopt a scheme of arrangement to turn Gasification Undertaking into a wholly-owned subsidiary. This is a positive move and very well received by the market as this would make it possible to produce olefins at low capital and operating expenses. Syngas as a fuel ensures supply reliability and helps to reduce energy cost volatility,” said Sonam Srivastava, Founder of Wright Research.
The rally comes after a sharp fall in the previous sessions. RIL shares had tumbled over 4% on Monday after it shelved a proposed deal to sell a 20% stake in its oil refinery and petrochemical business to Saudi Aramco for $15 billion. After missing two self-imposed deadlines, billionaire Mukesh Ambani’s Reliance Industries shelved a proposed deal to sell stake to Aramco as the Indian firm aims to focus on the new energy business.
“Due to evolving nature of Reliance’s business portfolio, Reliance and Saudi Aramco have mutually determined that it would be beneficial for both parties to re-evaluate the proposed investment in O2C business in light of the changed context,” the Indian firm said late Friday, adding that it will continue to be Saudi Aramco’s “preferred partner” for investments in India’s private sector.
Ambani had in company’s annual general meeting of shareholders in August 2019 announced talks to sell 20% stake in the oil-to-chemicals (O2C) business. This year too, at the AGM, Ambani stated that the deal would close by the end of the year. At the same event, he also announced new energy forays.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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