Bengaluru
Reliance led by Mukesh Ambani, Asia’s richest man, said on Monday Saudi Aramco was to invest roughly $15 billion for a 20% stake in its oil-to-chemicals business, while also detailing plans to launch cut-price home internet services across India next month.
The announcements drove Reliance shares up as much as 12% — its biggest such move since Jan. 14, 2009. The spike has put the company within touching distance of becoming the highest-valued Indian company again. Currently, it trails Tata Consultancy Services by slightly more than $1 billion.
Its plans to launch JioFiber broadband services threaten to upend India’s telecom market with offers of free voice calls for life, television and movie streaming and even free TV sets to go with some subscription plans.
Analysts at Kotak Institutional Securities said Reliance “hit all the right chords” with its announcements and upgraded the stock to “Buy” from “Sell.”
Shares of telecom majors Bharti Airtel fell almost 7% before recouping some losses, while Vodafone Idea slid as much as 10% as the announcements spurred worries of a repeat of what happened just three years ago when Reliance’s telecom upstart, Jio, burst onto the scene.
Visit news.dtnext.in to explore our interactive epaper!
Download the DT Next app for more exciting features!
Click here for iOS
Click here for Android