{"id":2166,"date":"2020-08-17T12:44:00","date_gmt":"2020-08-17T12:44:00","guid":{"rendered":""},"modified":"2025-11-07T11:51:41","modified_gmt":"2025-11-07T06:21:41","slug":"reliance-share-price-gains-post-fb-deal","status":"publish","type":"post","link":"https:\/\/www.equentis.com\/blog\/reliance-share-price-gains-post-fb-deal\/","title":{"rendered":"Reliance Share Price Gains on New Deals \u2013 Should You Invest? \u2013 Research &#038; Ranking"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div>\n<p>Updated on 17\/08\/2020<\/p>\n\n\n\n<p>Over the last few days, the stock of Reliance Industries has been trending post-Facebook\u2019s announcement of buying a minority stake in Mukesh Ambani\u2019s telecom arm Reliance Jio. The $5.7 billion investment has made Facebook the largest minority shareholder in Reliance Jio.<\/p>\n\n\n\n<p>According to newspaper reports, Reliance Jio is looking for more funds and trying to rope in investors like Saudi Arabia\u2019s $320 billion Public Investment Fund.<\/p>\n\n\n\n<p>This new investment will be over and above the $8 billion investment already raised by the company and the fourth capital infusion in less than a month. USA based General Atlantic is the latest to join the investment bandwagon in RIL\u2019s wholly-owned subsidiary, Jio Platforms with a planned investment of over 6,600 crore to buy 1.35 per cent stake.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>With Reliance share price gaining momentum, many investors are asking the same question \u2013 Is it time to invest in the stock now?<\/strong><\/h2>\n\n\n\n<p>To better understand the answer to this question, let\u2019s first take a look at the history of how the stock of Reliance Industries has generated <a href=\"https:\/\/www.equentis.com\/investment-advisory\/5in5-wealth-creation\">multibagger<\/a> returns to long term investors.<\/p>\n\n\n\n<p>Right from its <a class=\"wpil_keyword_link\" href=\"https:\/\/www.equentis.com\/ipos\" title=\"IPO\" link=\"linked\" id=\"530\">IPO<\/a> days, the stock of Reliance Industries has been a wealth creator. An investment of Rs. 10,000 in the year 1977 in the stock of Reliance Industries would be worth over Rs. 2 crores today.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Strengths of the company which can propel Reliance share price to new heights in future<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The largest company in India in terms of market capitalization<\/li>\n\n\n\n<li>Visionary management with an exceptional track record<\/li>\n\n\n\n<li>Well-diversified business spread across petrochemicals, retail, media and telecom<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Challenges ahead for Reliance Industries which may impact Reliance share price in future<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Immense competition for Reliance Jio from Bharti Airtel, the number 2 player in the segment.<\/li>\n\n\n\n<li>High levels of debt<\/li>\n\n\n\n<li>Falling demand for refined petroleum, RIL\u2019s core business<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Past performance of Reliance share prices alone cannot predict its future performance<\/strong><\/h2>\n\n\n\n<p>Yes, the stock of Reliance Industries has generated excellent returns to investors in the past. However, that alone should not be the only criteria which an investor should look at while investing in the stock of the company.<\/p>\n\n\n\n<p>Stocks of many Reliance group companies owned by the younger brother Anil Ambani like Reliance Capital and Reliance Communication which had performed exceptionally well in the past have bitten the dust off late with some companies of the group trading in even single digits.<\/p>\n\n\n\n<p>In 2019, the world\u2019s largest oil producer Saudi Aramco had announced its intent to purchase a stake in Reliance Industries hydrocarbon business, for $15-billion. However, given the recent collapse in crude oil prices, the proposed deal may not go through according to USA-based brokerage Bernstein.<\/p>\n\n\n\n<p>Reliance Industries has recently announced a rights issue which is aimed at making the company a zero-net-debt firm by March next year. Currently, Reliance Industries has a gross debt of over Rs. 3 lakh crore and net debt of Rs. 1.5 lakh crore.<\/p>\n\n\n\n<p>So, Reliance Industries, under the chairmanship of Mukesh Ambani, is taking the right steps to reduce or eliminate its debt. Having realized early that \u2018Consumer+Digital\u2019 is the new gold, Mukesh Ambani led Reliance Industries is on a mission to transform itself from an oil and petrochemicals company to a technology-driven, consumer and e-commerce company.<\/p>\n\n\n\n<p>However, before investing in the shares of Reliance Industries or any stock, an investor should look for an economic moat around it which in simple words means the ability of a business to retain its competitive advantages over its peers to secure its long-term profits and market share from competing firms.<\/p>\n\n\n\n<p>There are many investment opportunities currently available in the market, which have the potential to grow your wealth at a faster pace. Our detailed research can help you to invest in those untapped opportunities for <a href=\"https:\/\/www.equentis.com\/investment-advisory\/5in5-wealth-creation\">wealth creation.<\/a><\/p>\n\n\n\n<p><strong>New update on Reliance Jio as on 14th August 2020<\/strong><\/p>\n\n\n\n<p>The apex court of the country on 14th August 2020 stated that Reliance Jio must pay adjusted gross revenue (AGR) dues of RCOM as Jio has been using the&nbsp; spectrum of Reliance Communications from 2016.<\/p>\n\n\n\n<p>\u201cReliance Jio must pay RCom\u2019s AGR dues if it has been using RCom\u2019s spectrum since 2016,\u201d the supreme court bench said.<\/p>\n\n\n\n<p>&nbsp;As a result the department of telecommunications (DoT) can charge Reliance Jio around Rs 13,000 crore as dues for adjusted gross revenues, if its wants as per media reports.<\/p>\n\n\n\n<p>Reliance Jio is however likely to contest this as the company may not be liable to pay the AGR related dues of RCOM inspite of using its spectrum as it relates to latter\\&#8217;s 2G and 3G business carried out prior to the year 2016.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Disclaimer:<\/strong><\/h3>\n\n\n\n<p>The objective of this article is solely to help the readers understand whether it is worth investing in the stock of Reliance Industries (RIL) from a long-term perspective and should not be considered as an advice to buy\/sell\/hold.<\/p>\n\n\n\t\t<div data-elementor-type=\"section\" data-elementor-id=\"9185\" class=\"elementor elementor-9185\" data-elementor-post-type=\"elementor_library\">\n\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-e92a158 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"e92a158\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-65b41f6\" data-id=\"65b41f6\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-a613ee7 elementor-widget elementor-widget-shortcode\" data-id=\"a613ee7\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"shortcode.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-shortcode\">\t\t<div data-elementor-type=\"section\" data-elementor-id=\"6844\" class=\"elementor elementor-6844\" data-elementor-post-type=\"elementor_library\">\n\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-2efdbd0d elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"2efdbd0d\" data-element_type=\"section\" data-e-type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-783deaaa\" data-id=\"783deaaa\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-c60a2cc elementor-widget elementor-widget-heading\" data-id=\"c60a2cc\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Related investing topics<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-3e3de9dd elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"3e3de9dd\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-25 elementor-inner-column elementor-element elementor-element-40fd5db7\" data-id=\"40fd5db7\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-757ca8cb ekit-equal-height-enable elementor-widget elementor-widget-elementskit-icon-box\" data-id=\"757ca8cb\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"elementskit-icon-box.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"ekit-wid-con\" >        <!-- link opening -->\n                <a href=\"https:\/\/blog.researchandranking.com\/how-to-invest-in-share-market-guide\/\" class=\"ekit_global_links\" target=\"_blank\" rel=\"noopener\">\n                <!-- end link opening -->\n\n        <div class=\"elementskit-infobox text- text- icon-lef-right-aligin elementor-animation-  gradient-active  hover_from_left\">\n                        <div class=\"box-body\">\n                            <h3 class=\"elementskit-info-box-title\">\n                    How to Invest in Share Market?                <\/h3>\n                        \t\t  \t<p>Considering the volatility, investing in stock markets is both an art and science.<\/p>\n                                <\/div>\n        \n        \n                <\/div>\n                <\/a>\n        <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-25 elementor-inner-column elementor-element elementor-element-601073c\" data-id=\"601073c\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-8b38507 ekit-equal-height-enable elementor-widget elementor-widget-elementskit-icon-box\" data-id=\"8b38507\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"elementskit-icon-box.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"ekit-wid-con\" >        <!-- link opening -->\n                <a href=\"https:\/\/blog.researchandranking.com\/looking-for-one-multi-bagger-today-here-are-54-that-multiplied-investors-wealth\/\" class=\"ekit_global_links\" target=\"_blank\" rel=\"noopener\">\n                <!-- end link opening -->\n\n        <div class=\"elementskit-infobox text- text- icon-lef-right-aligin elementor-animation-  gradient-active  hover_from_left\">\n                        <div class=\"box-body\">\n                            <h3 class=\"elementskit-info-box-title\">\n                    5 Best Places To Live After Retirement In India                <\/h3>\n                        \t\t  \t<p>While some retired people set sail on voyages worldwide, others look forward to spending their time in relaxation and comfort.<\/p>\n                                <\/div>\n        \n        \n                <\/div>\n                <\/a>\n        <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-25 elementor-inner-column elementor-element elementor-element-7e5723c\" data-id=\"7e5723c\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-551526b ekit-equal-height-enable elementor-widget elementor-widget-elementskit-icon-box\" data-id=\"551526b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"elementskit-icon-box.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"ekit-wid-con\" >        <!-- link opening -->\n                <a href=\"https:\/\/blog.researchandranking.com\/90-percent-lose-money-in-stocks\/\" class=\"ekit_global_links\" target=\"_blank\" rel=\"noopener\">\n                <!-- end link opening -->\n\n        <div class=\"elementskit-infobox text- text- icon-lef-right-aligin elementor-animation-  gradient-active  hover_from_left\">\n                        <div class=\"box-body\">\n                            <h3 class=\"elementskit-info-box-title\">\n                    90% People Lose Money in Stocks?                <\/h3>\n                        \t\t  \t<p>Isn't it shocking? But it is a fact. There are countless reasons why investors lose money in stock markets.<\/p>\n                                <\/div>\n        \n        \n                <\/div>\n                <\/a>\n        <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-25 elementor-inner-column elementor-element elementor-element-6dc0c61\" data-id=\"6dc0c61\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-eb5233e ekit-equal-height-enable elementor-widget elementor-widget-elementskit-icon-box\" data-id=\"eb5233e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"elementskit-icon-box.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"ekit-wid-con\" >        <!-- link opening -->\n                <a href=\"https:\/\/blog.researchandranking.com\/is-long-term-investing-always-safe\/\" class=\"ekit_global_links\" target=\"_blank\" rel=\"noopener\">\n                <!-- end link opening -->\n\n        <div class=\"elementskit-infobox text- text- icon-lef-right-aligin elementor-animation-  gradient-active  hover_from_left\">\n                        <div class=\"box-body\">\n                            <h3 class=\"elementskit-info-box-title\">\n                    Is Long Term Investing Always Safe?                <\/h3>\n                        \t\t  \t<p>Let\u2019s understand what long-term means before we explain why Long Term Investing may not always be safe.<\/p>\n                                <\/div>\n        \n        \n                <\/div>\n                <\/a>\n        <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t\n\n\n\n<p><strong>Read more: \u00a0<a href=\"https:\/\/timesofindia.indiatimes.com\/blogs\/voices\/long-term-investing-helps-create-life-changing-wealth\" target=\"_blank\" rel=\"noreferrer noopener\">How Long-term investing helps create life-changing wealth \u2013 TOI<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Updated on 17\/08\/2020 Over the last few days, the stock of Reliance Industries has been trending post-Facebook\u2019s announcement of buying [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":2167,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center 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