Shares of Reliance Industries Ltd
(RIL) extended rally for the third straight day today. The company’s Chairman and Managing Director, Mukesh Ambani said that Saudi Aramco has agreed to a non-binding Letter of Intent (LOI) regarding a proposed investment in the Oil to Chemicals (O2C) division comprising the Refining, Petrochemicals and fuels marketing businesses of RIL, the company said on Monday at 42nd AGM.
The deal with Aramco, which values the business at $75bn including debt, also includes an agreement for Aramco to sell up to 500,000 barrels per day (bpd) to Reliance's Jamnagar refinery in Gujarat.
The stake sale and plans to bring in more investors for its consumer businesses is part of Reliance's push to become a zero net debt company by March 2021, the company said.
Mukesh Ambani said Reliance Industries is planning to sell a fifth of its oil-to-chemicals business to Aramco in what would be one of the largest foreign investments in the country.
Further, Mukesh Ambani said that the investment cycle for Jio is now complete. Mukesh Ambani also announced the roll-out of 'Jio Fiber' broadband services from September 5, promising free voice calls for life from landlines, 100 Mbps minimum broadband speed at subscription starting from Rs700 a month and free HD TV set on a commitment to an annual plan. Reacting to this news shares of Dish TV, PVR and Inox fell in today’s trade.
Reliance Industries Ltd is currently trading at Rs1,290.50, up by Rs128.5 or 11.06% from its previous closing of Rs1,162 on the BSE.
PVR Ltd is currently trading at Rs1,422.15, down by Rs44.15 or 3.01% from its previous closing of Rs1,466.30 on the BSE.
Dish TV India Ltd is currently trading at Rs22.80, down by Rs0.55 or 2.36% from its previous closing of Rs23.35 on the BSE.