News By/Courtesy: Riya Singh | 28 Jul 2020 13:15pm IST

HIGHLIGHTS

  • Reliance Industries Ltd toppled Exxon Mobil Corp to become the world’s largest energy company after Saudi Aramco
  • 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

Reliance Industries Ltd toppled Exxon Mobil Corp to become the world’s largest energy company after Saudi Aramco, as investors piled into the conglomerate lured by the Indian firm’s digital and retail forays.

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.

The Indian company extended gains in early trading on Monday, rising around 2 percent. Reliance’s shares have jumped 46 percent this year, while Exxon’s have fallen 39 percent as refiners across the globe struggled with a plunge in fuel demand.

While the energy business accounted for about 80 percent of Reliance’s revenue in the year ended March 31, Chairman Mukesh Ambani’s plan to expand the company’s digital and retail arms has helped him attract $20 billion into the Jio Platforms Ltd. unit. That in turn helped add $22.3 billion to Ambani’s wealth this year, propelling him to the fifth spot in the Bloomberg Billionaires Index.

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.

Reliance is the 10th highest m-cap company in Asia. China's Alibaba Group is ranked 7th globally. At 46th rank, Reliance is just below PepsiCo which has an m-cap of $189.8 billion. The 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.

Meanwhile, large-scale global oil demand destruction due to coronavirus — some 30 million barrels a day, or a third of regular usage, in April — sent energy markets into a second-quarter tailspin, from which they’ve only recently started to recover. Worst-in-a-generation oil prices combined with OPEC production cuts, collapsing refining margins and millions of barrels of unsold crude have hurt big oil companies including Exxon and Chevron Corp.

 

This article does not intend to hurt the sentiments of any individual, community, sect, or religion etcetera. This article is based purely on the author’s personal opinion and views in the exercise of the Fundamental Rights guaranteed under Article 19(1)(A) and other related laws being enforced in India for the time being.

Section Editor: Pushpit Singh | 28 Jul 2020 23:09pm IST


Tags : #relianceindustries

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