- Reliance Industries’ share price surged by over 2% even as volatility loomed large on other stocks in the market.
- This comes after RIL’s stock witnessed a battering of nearly 5% over the last month, after touching an all-time high recently.
- Two factors are responsible for investors throwing their weight behind
Mukesh Ambani ’s company, and they both have to do with the company’s telecom ambitions.
Shares of Reliance Industries were trading at ₹2,465 a piece as at 10:30 a.m., on Monday, November 29, up by more than 2% when compared to the closing price on November 26.
Earlier yesterday, Reliance Jio announced an anticipated tariff hike of up to 21% across all of its prepaid offerings, following in the footsteps of rivals Airtel and Vodafone Idea.
Additionally, the second factor that has given the stock price of Mukesh Ambani-led conglomerate a boost is a report by The Economic Times that states that Reliance is considering acquiring a stake in the UK telecom provider, British Telecom.
British Telecom is the largest UK telecom provider with a market share of 28%, according to a report by Statista.
This comes merely months after Reliance was reportedly close to acquiring T-Mobile Netherlands, eventually losing out to a consortium of private equity firms Apax Partners and Warburg Pincus. Despite losing the bid, the move signalled Reliance’s global telecom ambitions.
The ET report notes that the deliberations to acquire a stake in BT are still in the early stages, which means that a potential deal might still not fructify.
However, later during the day, RIL denied any intent to bid for BT, in an exchange filing.
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