homemarket Newsstocks NewsReliance Industries shares jump 3%; here's what's driving the rally

Reliance Industries shares jump 3%; here's what's driving the rally

Reliance Industries Limited (RIL) shares surge: Billionaire Mukesh Ambani promoted oil-retail-telecom conglomerate's share price rallied almost 3 percent on Wednesday. Not just that, global brokerages sees more upside in the stock.

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By CNBCTV18.com Jan 12, 2022 2:45:24 PM IST (Updated)

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Reliance Industries shares jump 3%; here's what's driving the rally
Reliance Industries Ltd (RIL) share price jumped nearly 3 percent to touch an intraday high of Rs 2524.35 on Wednesday. The sharp uptrend in the index heavyweight stock comes days after the conglomerate recently acquired New York's premium luxury hotel Mandarin Oriental for $98.15 million.

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Reliance Industrial Investments and Holdings Ltd (RIIHL), a wholly-owned subsidiary of RIL took over the iconic luxury hotel Mandarin Oriental New York, which was set up in 2003. It is a 248-rooms-and-suites hotel towering over Central Park, located at 80 Columbus Circle, directly adjacent to the pristine Central Park and Columbus Circle.
Mandarin Oriental New York occupies floors 35-54 and is known for its much-in-demand ballroom, five-star spa, and eating and drinking venues, including MO Lounge.
RIIHL has entered into an agreement to acquire the entire issued share capital of Columbus Centre Corp (Cayman), a company incorporated in the Cayman Islands and the indirect owner of a 73.37 percent stake in Mandarin Oriental New York, the firm informed the exchanges in a filing on January 8.
This is the second acquisition of an iconic hotel by Reliance in less than a year. In April 2021, Reliance acquired Stoke Park Ltd in the UK - an iconic locale that's been the setting for two James Bond films. The two iconic locales add to its current stake in Oberoi hotels and hotel/managed residences in Mumbai that it's developing.
Since the firm’s acquisition of Mandarin Oriental New York, RIL stock has overall gained 0.77 percent.
Meanwhile, global brokerage Jefferies earlier this week maintained its buy call on RIL shares with a target price of Rs 2,950, which is an upside of 17.25 percent from the current market price of RIL.
At 12:45 pm, RIL shares were trading 2.43 percent higher at Rs 2,514.55 on the Bombay Stock Exchange (BSE) and were up 2.36 percent at Rs 2,513.55 on the National Stock Exchange (NSE).
Going forward, Jefferies is of the view Retail and Jio will be driving growth for the conglomerate, according to reports.
In the past year, the stock has given a return of more than 28 percent to investors as against the benchmark index Sensex, which has risen 23 percent during the period. Since the start of 2022, RIL’s share price has gone up 4.55 percent.
--With PTI inputs
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Disclosure: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.

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