Reliance overtakes Exxon to become world’s 2nd most valuable energy firm
On Thursday, Reliance was ranked 48th and was behind ExxonMobil. Its share price on Friday scaled an all-time high of Rs 2,163 before settling at Rs 2,146.20, taking the company to 46th position
NEW DELHI: Reliance Industries has overtaken ExxonMobil to become the world’s second most valuable energy company after its market capitalization scaled to a record high of over Rs 14 lakh crore.
The oil-to-telecom conglomerate is now ranked 46th globally on market cap, according to stock market data.
On Thursday, Reliance was ranked 48th and was behind ExxonMobil. Its share price on Friday scaled an all-time high of Rs 2,163 before settling at Rs 2,146.20, taking the company to 46th position.
The Rs 13.6 lakh crore m-cap of Reliance together with Rs 54,262 crore m-cap of its partly-paid shares that were issued in the recent rights issue and are traded separately, puts the company’s combined market value at Rs 14.1 lakh crore or $ 189.3 billion.
This was enough to race past ExxonMobil which has an m-cap of $ 184.7 billion.
Globally, Saudi Aramco has the highest market cap of $ 1.75 trillion, followed by Apple ($ 1.6 trillion), Microsoft ($ 1.5 trillion), Amazon ($ 1.48 trillion), and Alphabet ($ 1.03 trillion).
Reliance is now the second most valuable energy firm. Aramco being the top energy company.
No Indian company has ever crossed an m-cap of Rs 14 lakh crore.
Besides being higher than ExxonMobil in m-cap, Reliance is also above Chevron which has an m-cap of about $ 169 billion as well as likes of Oracle, Unilever, Bank of China, BHP Group, Royal Dutch Shell and SoftBank Group.
At 46th rank, Reliance is just below PepsiCo which has an m-cap of $ 189.8 billion.
Reliance share price had touched a bottom of Rs 867 on March 23, 2020, when the total market value of the company stood at Rs 5.5 lakh crore or $ 73.5 billion.
It added $ 115.9 billion to shareholder wealth within just four months – one of the highest value creation feats in the world in such a short time – mostly on the back of record fundraising from equity dilution in its digital unit, Jio Platforms.
The firm added $ 39 billion market value within five weeks and $ 29 billion in the last 14 trading sessions.
ReliancePP or the partly paid-up shares issued in recently concluded Rights Issue have generated over 4.1 times returns to investors in less than two months.
The issue closed on June 4, 2020, when investors had to pay Rs 314.25 to own each of the partly paid-up share.
The ReliancePP shares listed on stock exchanges on June 15, 2020.
Reliance raised a total of Rs 2,12,809 crore through Rights Issue, equity sale in Jio Platforms, and investment by BP in its fuel retailing venture.
The combined capital raised has no precedence globally in such a short time.