RIL moves past Rs 1300 as market cheers its retailing foray
Reliance Industries gained 2% to Rs 1313 as investors welcomed its foray into the retail sector.
The scrip hit a high of Rs 1315.90 which is a lifetime high for the scrip.11.5 lakh shares changed hands in the counter on BSE.The stock has surged since late last month. From Rs 1175.20 on 26 October, the stock has surged to current Rs 1313.
The triggers for the scrip’s rally over the past few days have been many -better than expected Q2 results, the company doubling its natural gas output estimate from deep-sea fields and now the kickstarting of its foray in organised retail sector.RIL being an index heavyweight has played a key role in the Sensex’s surge since late last month.
Reliance Industries (RIL) formally entered organised retail market on Friday (3 November) through its 'Reliance Fresh' format stores. The rollout of Reliance Fresh would be followed by other formats - a nationwide chain of hypermarkets, supermarkets, discount stores, department stores, convenience stores and specialty stores.
This will entail an investment of more than Rs 25000 crore in the next five years. RIL's board had approved the retail venture early this year. Reliance expects to take its retail formats to 784 cities and towns, besides over 6,000 rural 'mandi' towns by 2010, with over 100 million square feet of retail space.The organized retailing in India is expected to show strong growth in coming years.
With regard to the oil & gas production and exploration business, RIL will invest $5.2-billion to double the output from its D6 block in Krishna Godavari basin to 80 million standard cubic meters per day (mmscmd). RIL had earlier proposed investment of $2.47 billion to produce 40 mmscmd for 7.5 years from discoveries - Dhirubhai 1 and 3 (in the D6 block) - out of total 34 wells. The company has made a dozen discoveries from the 15 wells drilled in the deep-sea but only the first four discoveries - Dhirubhai 1, 2, 3 and 6 - have been declared commercial. Reliance holds 90 per cent interest in Block D6 where it estimates reserves in excess of 14.5 trillion cubic feet. Niko Resources of Canada has the remaining 10 per cent.
Analysts feel that RIL's oil exploration and processing business will emerge as a major earnings contributor over the years which in turn will enable RIL to de-risk its earnings from an adverse refining/petrochemicals cycle.
Recently, Reliance Industries raised $300 million through the issuance of 10-12 year senior, unsecured notes which were bought by US insurers.
The scrip hit a high of Rs 1315.90 which is a lifetime high for the scrip.11.5 lakh shares changed hands in the counter on BSE.The stock has surged since late last month. From Rs 1175.20 on 26 October, the stock has surged to current Rs 1313.
The triggers for the scrip’s rally over the past few days have been many -better than expected Q2 results, the company doubling its natural gas output estimate from deep-sea fields and now the kickstarting of its foray in organised retail sector.RIL being an index heavyweight has played a key role in the Sensex’s surge since late last month.
Reliance Industries (RIL) formally entered organised retail market on Friday (3 November) through its 'Reliance Fresh' format stores. The rollout of Reliance Fresh would be followed by other formats - a nationwide chain of hypermarkets, supermarkets, discount stores, department stores, convenience stores and specialty stores.
This will entail an investment of more than Rs 25000 crore in the next five years. RIL's board had approved the retail venture early this year. Reliance expects to take its retail formats to 784 cities and towns, besides over 6,000 rural 'mandi' towns by 2010, with over 100 million square feet of retail space.The organized retailing in India is expected to show strong growth in coming years.
With regard to the oil & gas production and exploration business, RIL will invest $5.2-billion to double the output from its D6 block in Krishna Godavari basin to 80 million standard cubic meters per day (mmscmd). RIL had earlier proposed investment of $2.47 billion to produce 40 mmscmd for 7.5 years from discoveries - Dhirubhai 1 and 3 (in the D6 block) - out of total 34 wells. The company has made a dozen discoveries from the 15 wells drilled in the deep-sea but only the first four discoveries - Dhirubhai 1, 2, 3 and 6 - have been declared commercial. Reliance holds 90 per cent interest in Block D6 where it estimates reserves in excess of 14.5 trillion cubic feet. Niko Resources of Canada has the remaining 10 per cent.
Analysts feel that RIL's oil exploration and processing business will emerge as a major earnings contributor over the years which in turn will enable RIL to de-risk its earnings from an adverse refining/petrochemicals cycle.
Recently, Reliance Industries raised $300 million through the issuance of 10-12 year senior, unsecured notes which were bought by US insurers.
posted by SY at 7:37 PM
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