Jio tariff hike and reports of bid for UK telco British Telecom help Reliance bounce back
- 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.
AdvertisementMukesh Ambani’s Reliance Industries staged a rebound on Monday even as markets experienced volatility on the back of two positives – a 21%
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.
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.
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.
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.
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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