Shares of Mukesh Ambani-owned Reliance Industries jumped to a fresh nine-year high on Friday, a day after the company's promoter entities proposed to restructure their shareholding via inter-se transfers.
"The promoter group entities of RIL propose to restructure their shareholding by inter-se transfer of shares among the promoter group entities and have made the necessary disclosures in this regards," said a spokesperson for the company. "The proposed inter-se transfers will not result in any change in promoter group shareholding in RIL," the spokesperson added.
According to the company's filing to the stock exchanges, eight promoter group companies of RIL will buy around 119 crore shares from 15 other promoter group companies in an inter-se transfer at Rs 1,100.70 per share.
The promoter group companies acquiring RIL shares include Devarshi Commercials LLP, Karuna Commercials, Tattvam Enterprises, Srichakra Commercials, Svar Enterprises, Vasuprada Enterprises, Shreeji Comtrade and Shrikrishna Tradecom.
As per stock exchange data, 55 promoter entities held 46.48 per cent stake in RIL as of December-end, 2016. RIL chairman Mukesh Ambani and wife Nita hold 0.11 per cent stake each in their individual capacity.
Reliance shares hit a fresh high of Rs 1,287.80 on Friday and was trading at Rs 1,259.25, up by Rs 25.80 or 2.09 per cent, on the BSE, at the time of filing of the story.
The stock has been on a strong run off-late, since the announcement on February 21 of paid offers for its Jio 4G VOLTE services, which will be effective from April. Since then, the stock has surged 16 per cent, while the wider BSE Sensex has been flattish.
RIL launched Jio last September, with free voice-for-life service. In addition, the heavily slashed data rates (free till April) has helped the company to garner more than 100 million subscribers.
In a presentation to analysts, RIL said it expects data market in India to reach Rs 3 lakh crore by 2020-21, adding it is well-positioned to achieve more than 50 per cent revenue market share.
"The telecom uncertainty has decreased with disclosure on tariff plans, but not subsided completely," feel analysts at investment bank Morgan Stanley.
They believe that the growth in return on capital employed in the energy business will buffer the impact from lower telecom returns in the near-term.
"After nearly doubling its energy business investments in the past four years, we believe, RIL's energy earnings are poised to inflect over the next two years, benefiting from slowing oil oversupply, a rising global gas glut and the start of a polyester upcycle," said the analysts at Morgan Stanley.
