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Reliance Industries’ shares extend rally after deal with Facebook; zooms over 11%

It was the top gainer on both the 30-share BSE Sensex and NSE Nifty-50 in morning trade.

SNS | New Delhi |

Shares price of Reliance Industries (RIL) on Wednesday rallied over 11 per cent after social media giant Facebook announced an investment of USD 5.7 billion (Rs 43,574 crore) to buy a 10 per cent stake in Jio Platforms.

At around 1.27 p.m., the company’s scrip advanced 11.37 per cent to Rs 1,376.60 on S&P BSE Sensex. Similar trends were witnessed on the NSE Nifty50 where the company surged 11.17 per cent to Rs 1,376.30.

It was the top gainer on both the 30-share BSE Sensex and NSE Nifty-50 in morning trade.

The deal between two companies has also led to an increase in RIL’s market valuation by Rs 45,527.62 crore to Rs 8,29,084.62 crore.

Earlier in the day, Facebook chief Mark Zuckerberg announced an investment of USD 5.7 billion (Rs 43,574 crore) to buy a 10 per cent stake in the firm that houses billionaire Mukesh Ambani’s telecom arm Jio as the social media giant looks to expand presence in its largest market in terms of subscriber base.

Reliance in a separate statement said the investment by Facebook values Jio Platforms at Rs 4.62 lakh crore pre-money enterprise value (USD 65.95 billion, assuming a conversion rate of Rs 70 to a US dollar).

“Facebook’s investment will translate into a 9.99 per cent equity stake in Jio Platforms on a fully diluted basis,” Reliance Industries said.

Jio Platforms, a wholly-owned subsidiary of Reliance Industries Ltd (RIL), houses digital services of the group. Reliance Jio Infocomm is a wholly-owned subsidiary of Jio Platforms.

The Facebook deal is part of value unlocking by RIL to cut debt. RIL has been seeking strategic partnerships across its businesses while targeting to deleverage its balance sheet.