Financials: Today i.e. on 28th November 2019 Reliance Industries Limited (RIL) becomes first listed company on Indian bourses to cross Rs 10 lakh crores (equivalent to US$ 140 billion) in terms of market capitalization. RIL had a top-line of US $ 87 billion in FY2018-19 with bottom-line of US $ 5.5 billion dollars at the current exchange rate of Rs 71.50 per dollar, the highest profit making company listed on the bourses. When RIL scaled milestone of Rs 10 lakh crore, its market value catapulted 600 times over the past 30 years. It also became first listed company to attain Rs 10k crore in the quarterly net profit in 2019. RIL has transformed itself from a yarn manufacturer to an energy giant and capturing significant share in digital and retail segments.
Background: The Company was founded by Dhirubai Ambani and Champaklal Damani in 1960s as Reliance Commercial Corporation. In 1966, Damani ended the partnership, and Dhirubhai incorporated Reliance Textiles Industries Pvt Ltd for the polyester business, which later went on to become popular Vimal brand. This company came out with public issue in 1977, which was oversubscribed 7 times. The name of the company Reliance Textiles Industries Ltd was changed to Reliance Industries Ltd in 1985. Thereafter, RIL diversified into petrochemicals, natural gas, telecommunications, Retail and Media over a period of time.
Global Standing: The Company’s Equity shares are listed on NSE and BSE whereas Global Depository Receipts (GDRs) are listed on Luxemburg Stock Exchange. It had closed at US$ 44.00 dollars on 27th November 2019; each GDR represent 2 ordinary shares of Rs 10 each. When one takes a look at global level, it is dominated by US Companies Microsoft, Amazon, Apple, Alphabet, Berkshire Hathway with two Chinese technology companies Tencent and Alibaba finding place in top 10 most valued companies. While Apple, Amazon and Microsoft had crossed US$ 1 trillion mark in the past, RIL market cap was one-sevenths of these US companies. Saudi Arabia Oil giant Aramco, in all likely-hood, take the numero uno position when it gets listed on 6th December 2019 with likely market valuation of US$ 1.7 trillion.
Reward to Shareholders: The Company has been consistently paying dividends for more than 2 decades. It has also rewarded shareholders with 4 liberal bonus issues in 1983, 1997, 2009 and 2017. The petrochemical refinery set up at Jamnagar is the largest refinery in the world. RIL’s consolidated debt has grown to Rs 2.87 lakh crore as on 31st March 2019 though its Chairman has pledged to pare debt gradually and make it debt free by March 2021.The Company was darling of the share markets for almost 2 decades with highest weight in BSE Sensex. It was also first listed Indian company to attain US $ 100 billion market capitalization in October 2007 when exchange rate was Rs 39.5. It took almost 11 years to reclaim US $ 100 billion mark in July 2018 when exchange rate moved up to Rs 68.6 per dollar.
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