Shares of Reliance Industries Limited (RIL) are trading in the green today after multiple reports suggesting the finalization of a deal, buzzing since October 2023, about the merger with Disney.
With a market capitalization of Rs 16.71 lakh crores, the stocks of Reliance Industries Limited opened their trading hour on Thursday at Rs 2,453 and currently trades at Rs 2,469.80. The company’s scrip witnessed an intra-day high of Rs 2,475 indicating a gain of approximately 1.70 percent compared to the previous close of Rs 2,433.40 apiece.
Such bullish stock price movements are observed today after multiple reports suggesting the finalization of a deal about the merger with Disney. Both companies are expected to be in the final stages of delineating the particulars of a non-binding term sheet outlining the merger of their India media operations.
In October 2023, reports surfaced about Reliance Industries evaluating Disney’s India assets encompassing the ‘Disney+ Hotstar’ streaming service and ‘Star India’. If the deal turns out to be possible, then, Reliance will probably inject funds to secure a minimum 51 percent stake with Disney retaining the remaining ownership.
During the recent financial quarters, the company has boosted its prime indicators of business such as operating revenues and after-tax profits. The former moved up from Rs 2,10,831 crores during Q1FY23-24 to Rs 2,34,956 crores during Q2FY23-24, and, the latter, keeping the timeframe the same, increased from Rs 18,182 crores to Rs 19,820 crores.
During Q2FY24, the company reported a stellar performance in its consolidated EBITDA numbers, especially the ‘Retail’ segment, improving the margins by 80 bps due to strong footfalls, etc.
The Mukesh Ambani-led company is one of the well-known conglomerates based in India that is engaged in a wide range of businesses, i.e., hydrocarbon exploration and production, refining, financial services, petrochemicals, retail, communications, etc.
Written by Amit Madnani
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