Mukesh Ambani, led Reliance Industries hit record high levels on Monday afternoon, after a report said that China’s retail giant Alibaba has initiated talks with Reliance Retail to form a mega Indian retail joint venture .
According to a report, the investment could be upwards of $5 billion aimed to challenge the dominance of Flipkart and Amazon in the world’s fastest-growing economy.
RIL shares rose by as much as 2.55% to hit a record high 1,234.5 on NSE this afternoon. “The report on the JV will definitely move the stock up,” Harshvardhan Dole, an analyst at IIFL told adding that the details of the deal were awaited.
“Alibaba is willing to pick up a significant stake in Reliance Retail, preferably 50%, which will require Alibaba to invest $5-6 billion. It could also result in a strategic JV between Alibaba and Reliance Retail, with a smaller stake held by Alibaba,” quoted unidentified sources as saying.
While the retail business of the oil-telecom conglomerate Reliance Industries has been performing well over the last few quarters, Mukesh Ambani now plans to harness technology and provide augmented reality and virtual reality to enhance the shopping experience for customers.
Last week, Reliance Industries achieved a new feat, as RIL became the firm with highest weightage in Nifty after 6 years. Reliance Industries shares command a weightage of 9.23% on the Nifty 50 followed by IT firm TCS, having a weightage of 9.21% in the index.
Interestingly, with a market cap of a whopping 7.81 lakh crore, RIL also holds the distinction of being india’s most valued company.
In July this year, Reliance Industries reclaimed the top spot to become India’s most valued company by market capitalization as the shares surged to record high levels, extending gains following robust Q1 results.
Reliance Industries shares were trading strongly, up by more than 2.3% at Rs 1,231.7 this afternoon. RIL shares have returned a whopping 60% in the last one year period, adding Rs 2.8 lakh crore in mcap. In comparison, the Nifty 50 has gained about 18% in the past one-year period.>