RIL shares zoom to decade high after company announces plan to turn debt-free

New Delhi: The scrip of Reliance Industries Ltd (RIL) on Tuesday zoomed over 12 per cent after the company announced a host of investment proposals at its annual general meeting.

The scrip opened the day on a bullish note and jumped 12.09 per cent to Rs 1,302.50 on the BSE.

It was the top gainer among the 30 front line companies on the index.

On the NSE, it climbed 12.10 per cent to Rs 1,302.80.

Market was closed on Monday on account of Bakri Id.

Reliance Industries chairman Mukesh Ambani on Monday announced plans to sell stakes in the firm's oil and chemicals business to Saudi oil giant Aramco and in fuel retail network to BP plc for Rs 1.15 lakh crore, and said its telecom unit Jio will begin offering fibre-based broadband services from next month.

Saudi Aramco will buy a 20 per cent stake in the oil and chemicals business of Reliance, including the 1.36 million barrels a day Jamnagar refining complex in Gujarat, for an enterprise value of USD 75 billion. BP will buy 49 per cent stake in the firm's 1,400 petrol pumps and aviation fuel selling facilities at 31 airports for another Rs 7,000 crore.

The twin deals along with deleveraging of telecom arm Jio's infrastructure assets will help Reliance become "a zero-net debt company within the next 18 months, that is by March 31, 2021", Ambani said at the company's annual general meeting (AGM).

Ambani also announced roll out of the fiber-based fixed-line broadband services from September 5, offering internet speed of at least 100 mbps and free voice calls for life for as low as Rs 700 per month.