Reliance Industries Limited RIL surges 6 per cent to hit intraday

Reliance Industries Limited RIL surges 6 per cent to hit intraday

Shares of Reliance Industries Limited RIL surged 6 per cent to hit an intraday high of Rs 2,502. The company announced on the BSE that it will implement a scheme to restructure its gasification assets.

The Board of Reliance Industries Limited has decided to implement a scheme of arrangement to transfer the gasification undertaking into a wholly-owned subsidiary, it said.

The stock ended up 6.10 per cent higher at Rs 2,494. It was 40 against the previous close of Rs 2,350. The firm's market cap rose to 15,82, 283.51 crore.

The shares are higher than 5 day, 100 day and 200 day moving averages but are lower than 20 day and 50 day moving averages. The large-cap stock has gained 28 per cent in the last year and has gone up 26 per cent since the beginning of the year.

The gasification project in Jamnagar was going to ensure the production of syngas that would meet the energy requirements, as refinery off-gases are repurposed for the Refinery Off Gas Cracker ROGC to ensure the production of olefins at competitive operating costs. Syngas is used to make hydrogen for consumption in the Jamnagar refinery, which helps to keep energy costs stable.

The risk and returns associated with the gasifier assets are likely to be different from the other businesses of the conglomerate, according to the company. RIL expects to draw in a different pool of investors and strategic partners for the gasification assets.

On Monday, the shares of Mukesh Ambani-led Reliance Industries Ltd RIL fell by 4.69 per cent to hit an intraday low of Rs 2,356. After the company said it had decided with Saudi Aramco to re-evaluate the proposal to acquire a stake in the Indian conglomerate, 75 on the BSE said it had decided to re-evaluate the latter's proposal to acquire a stake in the Indian conglomerate.

RIL has withdrawn its application with the National Company Law Tribunal NCLT for segregating its oil-to- chemicals O 2 C business after agreeing to a mutual decision with Saudi Aramco to reassess the oil giant's proposed $15 billion investment in RIL's O 2 C business.

In August 2019, RIL and Aramco signed a letter of intent for the oil giant to acquire a 20 per cent stake in the Indian conglomerate, but the deal was delayed due to the pandemic.

The deal with Saudi Aramco pertaining to the O 2 C business will not have a financial impact, according to JP Morgan. The brokerage house has a 'neutral' rating on the stock with a target price of Rs 2,575 per share.