Jio tariff hike and reports of bid for UK telco British Telecom help Reliance bounce back

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Jio tariff hike and reports of bid for UK telco British Telecom help Reliance bounce back
Reliance's global telecom ambitions and Jio tariff hikes have given the company's shares a boostBCCL
  • Reliance Industries’ share price surged by over 2% even as volatility loomed large on other stocks in the market.
  • This comes after RIL’s stock witnessed a battering of nearly 5% over the last month, after touching an all-time high recently.
  • Two factors are responsible for investors throwing their weight behind Mukesh Ambani’s company, and they both have to do with the company’s telecom ambitions.
Mukesh Ambani’s Reliance Industries staged a rebound on Monday even as markets experienced volatility on the back of two positives – a 21% Jio tariff hike and reports of Reliance being interested in UK telco British Telecom.

Shares of Reliance Industries were trading at ₹2,465 a piece as at 10:30 a.m., on Monday, November 29, up by more than 2% when compared to the closing price on November 26.

Jio tariff hike and reports of bid for UK telco British Telecom help Reliance bounce back
Reliance share price in November, 2021BSE / Business Insider India / Flourish

Earlier yesterday, Reliance Jio announced an anticipated tariff hike of up to 21% across all of its prepaid offerings, following in the footsteps of rivals Airtel and Vodafone Idea.
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Additionally, the second factor that has given the stock price of Mukesh Ambani-led conglomerate a boost is a report by The Economic Times that states that Reliance is considering acquiring a stake in the UK telecom provider, British Telecom.

British Telecom is the largest UK telecom provider with a market share of 28%, according to a report by Statista.

This comes merely months after Reliance was reportedly close to acquiring T-Mobile Netherlands, eventually losing out to a consortium of private equity firms Apax Partners and Warburg Pincus. Despite losing the bid, the move signalled Reliance’s global telecom ambitions.
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The ET report notes that the deliberations to acquire a stake in BT are still in the early stages, which means that a potential deal might still not fructify.

However, later during the day, RIL denied any intent to bid for BT, in an exchange filing.

SEE ALSO:

Mukesh Ambani-led Reliance Jio hikes prices of its plans by 21%

Airtel’s popular prepaid plans may now cost you up to 25% more

Jio is slowing down in the race to 500 million subscribers – a goal set by none other than Mukesh Ambani
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