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RIIHL Acquires 3.56% Stake, Promotes RIL

2023-08-25

Reliance Industrial Investments and Holdings Limited (RIIHL) has seamlessly taken over the promoter mantle of Reliance Industries Limited (RIL) by procuring a 3.56 per cent stake in Petroleum Trust, a fellow promoter entity. This transition transpired through an off-market transaction, as per official exchange filings.

Petroleum Trust, integral to the promoter group of the target entity, divested its holdings. This strategic distribution designates RIIHL as a key member within the promoter group. Notably, this evolution does not impact the cumulative shareholding percentage of the promoter and its consortium in RIL, maintaining consistency before and after RIIHL's acquisition.

Currently valued at Rs 1.71 trillion, RIL's performance over the past year yielded a 4.8 per cent return to investors, contrasting with the Nifty 50 Index Is 10.6 per cent gains.

In parallel, Jio Financial Services, a subsidiary of the RIL conglomerate, witnessed its share price locked at a 5 per cent lower circuit for the third consecutive session. This followed a lukewarm listing on Monday.

Notably, on August 22, the state-owned Life Insurance Corporation of India (LIC) procured a 6.66per cent stake in Jio Financial Services Ltd. (JFSL). This acquisition, facilitated through a non-banking financial entity demerger, equated to 4.68per cent of Reliance Industries' pre-demerged value, as per a company announcement on July 19. As of June 30, LIC's Reliance Industries holdings amounted to 6.49 per cent.

In midday trade, RIL shares experienced a modest uptick, reaching Rs 2,529 on the NSE.