Reliance Industries skyrocketed more than 10 per cent on the BSE after Facebook bought a 9.9 per cent stake in Reliance Jio, the telecom subsidiary of Reliance Industries for $5.7 billion (Rs 43,574 crore). This is the largest investment for a minority stake by a tech company anywhere in the world. The transaction is, however, subject to regulatory approvals.
The shares of Reliance Industries ended at Rs 1,363, higher by Rs 126 or 10.2 per cent, on the BSE. The shares had opened at Rs 1,320 and touched a low of Rs 1,300 and a high of Rs 1,384.
The mega deal will give the social media giant a foothold in the massive Indian market and help the Indian oil-to-telecom conglomerate to cut its debt significantly.
Reliance Jio, the fast-growing telecom carrier controlled by billionaire Mukesh Ambani, began operations in late 2016. It provides telecom and digital services under brand Jio, and provides a connectivity platform to more than 38.8 crore subscribers.
The BSE Sensex ended the day with gains of 743 points or 2.4 per cent and Nifty added 205 points or 2.2 per cent.
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