Shares of Reliance Industries Ltd (RIL) rose two percent on Monday, hitting an all-time high of Rs 2,724.70 after the conglomerate announced two acquisitions over the weekend. RIL was also the biggest contributor to Nifty gains today, offsetting losses from TCS and Nifty IT.
This came after the four percent gains on Friday, after RIL touched a market capitalisation of Rs 18 lakh crore, cementing the conglomerate's position as India's most valuable company.
The wholly-owned subsidiary of RIL - Reliance New Energy Solar Ltd (RNESL) -- acquired REC Solar Holdings from China National Bluestar (Group) Co Ltd, for an enterprise value of $771 million.
Norway-based REC specialises in ]long-life solar cells and panels for clean and affordable solar power. It has three manufacturing facilities - two in Norway for making solar-grade polysilicon and one in Singapore making photovoltaic cells and modules.
This acquisition will help RIL with a ready global platform and the opportunity to expand and grow in key green energy markets globally, including in the US, Europe, Australia and elsewhere in Asia.
RNESL is also planning to acquire a 40 percent stake in renewables firm Sterling and Wilson Solar through a combination of preferential allotment, share sale by the promoter and open offer.
RNESL will pay Rs 1,790 crore for the preferential allotment and the purchase of shares from the promoter, totalling 22.16 percent.
This second acquisition is a part of RIL’s initiatives to make India a global leader in green energy.
Also Read |
While sharply raising its target price on RIL's stock last week, Morgan Stanley had pointed out that value is being attributed to the new energy business.
At 9:25 am, shares of RIL were up 1.5 percent at Rs 2,711.05, backed by hefty trading volumes.
The stock has surged 11 percent in the past month as compared to the benchmark Nifty50's three percent rise.
First Published: Oct 11, 2021 9:54 AM IST
Note To Readers
(Disclosure: Reliance Industries Ltd, which owns Jio, is the sole beneficiary of Independent Media Trust that controls Network18, the parent company of CNBCTV18.com.)
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Gonda Lok Sabha election: BJP's Kirti Vardhan Singh takes on Beni Prasad Verma's granddaughter Shreya
May 19, 2024 10:19 PM
Faizabad Lok Sabha election: Can Ayodhya Ram Temple strengthen BJP's stronghold here?
May 19, 2024 10:16 PM
Amethi Lok Sabha election: Can BJP's Smriti Irani retain the Congress bastion she won in 2019?
May 19, 2024 10:12 PM
Rae Bareli Lok Sabha Election: Can Rahul hold on to this Gandhi family bastion?
May 19, 2024 10:09 PM