Reliance Industries is now the 6th largest oil company in the world

Pips Britain's BP Plc to break into an elite club of energy supermajors

INDIA-ECONOMY-TELECOM-RELIANCE Mukesh Ambani | AFP

Mukesh Ambani-led Reliance Industries has achieved an unprecedented milestone as it inches closer to the Rs 10 lakh crore mark. The oil-to-telecom company has become the sixth largest oil company in the world, pipping Britain's BP Plc to break into an elite club of energy supermajors.

Reliance Industries is currently valued at $138 billion, while BP Plc has a market valuation of $132 billion, as on Tuesday. Exxon Mobil Corp tops the list with a market value of about $290 billion. However, the Aramco IPO, with a valuation target of between $1.6 trillion and $1.7 trillion, will make it the world's biggest.

RIL's stocks have been on a northward spiral after Ambani announced plans to cut the company's net debt to zero in 18 months through measures, including a stake sale in the oil-to-chemicals business to Saudi Aramco. On Tuesday, the company's market value saw further rally on Tuesday, thanks to a tariff hike announcement by Reliance Jio. 

On Wednesday, RIL's stock climbed 4.10 per cent to Rs 1,571.85—its record high—on the BSE. On Tuesday, it became the first Indian company to hit a market valuation of Rs 9.5 lakh crore. Last month, RIL became the first Indian firm to hit the Rs 9 lakh crore market valuation mark in intra-day trade.

In August 2018, RIL became the first domestic firm to cross the Rs 8 lakh crore mark in terms of market valuation.

RIL's market value, which briefly surpassed BP for the first time at the end of last month, regained and extended its lead after its shares hit a fresh high in Mumbai on Wednesday. The firm is also narrowing the gap with PetroChina Co., currently Asia's biggest oil firm by value, reported Bloomberg