Facebook’s investment in Reliance Jio boosts RIL share value by ₹50,000 crore
- At 9.07 am, RIL’s shares were trading at ₹1,320 which is 6.68% higher than the previous close.
- This is the first time since lockdown that RIL’s share price is above ₹1300 apiece.
- This came after Mukesh Ambani owned company clinched a deal with
Mark Zuckerberg’s Facebook on the early morning of April 22.
- Facebook said it would invest $5.7 billion in Reliance Jio
AdvertisementInvestors in Reliance Industries are in for a treat today. The shares of the company which suffered a massive loss yesterday registered a thrilling comeback to gain as much as ₹50,000 crore in market capitalisation within the first few minutes of trading.
At 9.07 am, RIL’s shares were trading at ₹1,320 which is 6.68% higher than the previous close. This is the first time since lockdown that RIL’s share price is above ₹1300 apiece.
This came after Mukesh Ambani owned company clinched a deal with Mark Zuckerberg’s Facebook on the early morning of April 22. It said it would invest $5.7 billion in Reliance Jio — a telecom company which brought 388 million people online within four years. The deal is aimed at making Reliance debt-free as Ambani promised last August.
Ambani’s fortunes took a hit in 2020
This deal might cover some of the troubles that the refining to retail to telecom conglomerate is facing. Yesterday, Indian investors lost ₹30,000 crores in Reliance Industries in the first few minutes of trading after US crude oil prices went sub-zero in value per barrel.
Even before the crude oil price crash, Mukesh Ambani’s wealth has been oscillating in the last few weeks. However, the Facebook-Jio deal came just in time.
This year, Ambani’s net worth crashed by 41% to stand at $34.4 billion on 19 March, according to the Bloomberg Billionaires Index. But it also recovered slowly to reach $45 billion as of April 20, as per index. However, he lost his position as one the top ten billionaires in the world, to stand at 19th this year, according to Forbes.
Ambani was worth $58.6 billion when the year started.
A crude crash
The volatility in crude oil has been affecting his fortunes apart from a general meltdown in the stock markets due to Coronavirus pandemic. Reliance Industries receives three-fifths of its operating profits from its oil business.
AdvertisementThe pandemic has affected Reliance’s stock bull run in 2019. The stock added a whopping ₹2.49 trillion — highest value addition in market value — in 2019 alone. But it couldn’t hold on to success in 2020.
On March 19, RIL shares were trading at ₹917 apiece. The crude oil also cast a shadow on the $15 billion Saudi Aramco deal wherein the global major was supposed to buy 20% stake in its oil business. However, now analysts fear that it might be delayed.
“We thought that Aramco would put money into RIL, but after this oil price crash, many companies are now looking for the ways that they can put their cash reserves to use,” Mihir Sharma from Observer Research Foundation told Business Insider India.
SEE ALSO: Mukesh Ambani’s RIL loses ₹30,000 crore in the first few minutes of trading
How to check jio Data Balance
Popular on BI
- MrBeast called out TikTok for allowing a deepfake version of him hawking $2 iPhones to run wild on the app: 'This is a serious problem'
- How an OnlyFans creator earned $60,000 from a 'marathon' livestream
- TikTok's strategy for US dominance is straight out of Amazon's playbook — but creators are the fuel for its flywheel
- Travel Boom: India spends 2X of pre-pandemic level on Airbnb with Goa leading the charge
- Swiggy disburses over Rs 450 cr in loans to 8000 restaurant owners
- Hyundai Motor India says all its vehicles to come with 6 airbags
- Earthquake jolts Delhi and other parts of northern India
- World Bank pegs India's FY24 GDP growth at 6.3% as global headwinds emerge