Reliance Industries rose 1.97% at Rs. 985 at 10:58 IST on BSE on reports Reliance Group is in talks with Japan's Orix Corp to acquire the latter's 23.87% stake in unlisted Infrastructure Leasing and Financial Services for around $1.2 billion.
Meanwhile, the BSE Sensex was up 158.70 points, or 0.90%, to 17,859.61.
On BSE, 2.29 lakh shares were traded in the counter as against an average daily volume of 8.99 lakh shares in the past one quarter.
The stock hit a high of Rs. 989.85 and a low of Rs. 968.25 so far during the day. The stock had hit a 52-week high of Rs. 1187 on 1 November 2010 and a 52-week low of Rs. 840.55 on 1 June 2010.
The stock had outperformed the market over the past one month till 25 February 2011, gaining 0.77% compared with the Sensex's 6.69% decline. The scrip had also outperformed the market in past one quarter, falling 1.46% as against 8.37% decline in the Sensex.
India's largest private sector company by market capitalisation has an equity capital of Rs.3273.05 crore. Face value per share is Rs. 10.
Orix has been an investor in communications Leasing and Finance Company (IL&FS) since 1994. If the deal materialises, it will pave the way for Reliance Industries (RIL)'s entry into the financial services business.
Media reports, however, did not clarify whether the deal would be done by the private investment firms owned by billionaire Mukesh Ambani, who controls energy major Reliance, or the company.
RIL is free to enter almost any sector after Mukesh Ambani and his younger brother Anil Ambani ended a pact last year that had prevented them from competing in each others' industries.
IL&FS' other main investors include Life Insurance Corporation of India (
LIC), Housing Development Finance Corporation (HDFC) and superior wealth fund Abu Dhabi Investment Authority.
RIL recently forged a partnership with global oil giant BP Plc that would pay $7.2 billion (Rs 32,400 crore) for 30% stake in 23 of RIL's oil and gas fields. The plan also involves a joint venture that would eventually take the combined investment value to $20 billion (Rs 90,000 crore) over the next few years. BP may pay Reliance an additional $1.8 billion (Rs 8,100 crore) based on future commercial success in the blocks.
Reliance Industries net profit rose 28.1% to Rs. 5136 crore on 5.20% rise in net sales to Rs.59789 crore in Q3 December 2010 over Q3 December 2009.
Source: [Indiainfoline]
