No change in RIL valuation outlook on Aramco deal re-evaluation: IIFL

Reliance Industries Ltd (RIL) on Friday said that it had decided to re-evaluate the deal under which Saudi Aramco was to invest roughly $15 billion in RIL’s oil-to-chemicals (O2C) business. The 20 percent stake sale in the unit was announced in 2019 but was delayed as oil prices and demand crashed last year due to the pandemic.

IIFL’s Harshvardhan Dole said that sentimentally, the development is negative, but it does not change earnings or valuation outlook for the company’s O2C business.

Dole said that the state of RIL’s balance sheet was very different now following the series of fund raises over the last one year.