Reliance Industries Shares Stage Biggest Jump In Over 2 Years On Aramco Deal

Reliance Industries shares rose the most since January 14, 2009, a day after the company's chairman, Mukesh Ambani, said the group has a clear roadmap to become zero net-debt company in 18 months. Reliance Industries Limited (RIL) shares opened higher at Rs 1,240.00 and rose to as much as Rs 1,302.80 apiece on the BSE in morning deals, marking an intraday gain of 12.10 per cent from its previous close of Rs 1,162. 

Reliance Industries announced that Saudi Arabia's oil giant Aramco signed a letter of intent to buy a 20 per cent stake in its oil-to-chemicals business in one of the largest foreign investments in the country. The deal valued the business at $75 billion including debt, said Mr Ambani, addressing shareholders at his company's 42nd Annual General Meeting in Mumbai.

He said the group's telecom vertical, Reliance Jio Infocomm, and retail venture - Reliance Retail - would account for 50 per cent of the company's earnings soon.

Mr Ambani also assured shareholders that they would continue to get periodic bonus issues and higher dividends once the group became debt-free.

"As we achieve our zero net-debt target, I assure you my dear shareholders that we will reward you abundantly through higher dividends, periodic bonus issues and other means, and at a more accelerated pace than any time in our history," said Mr Ambani. (Full text of Mukesh Ambani's speech at 42nd Reliance Industries AGM)

Reliance Industries shares ended 9.74 per cent higher at Rs 1,275 apiece on the National Stock Exchange, sharply outperforming the Nifty which ended 1.65 per cent lower amid a broad-based selloff.

As many as 20.92 lakh Reliance Industries shares changed hands in today's trade, against an average of 5.13 lakh shares traded daily in the past two weeks.