Reliance Industries Shares Fall After Halting $15 Billion Aramco Deal

Monday, 22 November 2021Newsdesk

Shares of Reliance Industries fell as much as 4.2 per cent to hit an intraday low of ₹ 2,368.20 on the BSE on Monday as the country's largest firm decided to halt a stake sale in its oil-to-chemicals business (O2C) to Saudi Arabia's Aramco and pulled back from a potential spinoff of its most profitable unit.

New Delhi, 22 November 2021

As per news report of NDTV, Over the last two years, the oil-to-telecom conglomerate owned by billionaire Mukesh Ambani has been in the process of selling a 20 per cent stake in the oil business for roughly $15 billion to Aramco and making it a separate unit, while also revamping it in a push towards renewable energy. The company has remained net-debt free since June last year. Analysts at Jefferies said the deal cancellation has no bearing on Reliance's balance sheet but comes as a disappointment as it loses a chance to set a benchmark of $75 billion valuation for the O2C business. Reliance had recently inducted Aramco Chairman Yasir Al-Rumayyan into its board amid opposition by California State Teachers' Retirement Fund. Al-Rumayyan's appointment, initially seen as part of a process to formalise the stake sale, was later said to have no connection to the deal.

Source - NDTV