Shares of Reliance Industries on Wednesday jumped over 10 percent after social media giant Facebook announced an investment of $5.7 billion (Rs 43,574 crore) to buy a 10 percent stake in Jio Platforms.
On the NSE, shares of the company zoomed 9.83 percent to close at Rs 1,359.
It was the top gainer on both the 30-share BSE Sensex and NSE Nifty-50.
Facebook invests $5.7 billion in Reliance Jio; becomes largest minority shareholder
In traded volume terms, 26.30 lakh shares were traded on the BSE and 6.5 crore shares on the NSE during the day.
The company's market valuation also jumped by Rs 80,710.7 crore to Rs 8,64,267.70 crore.
"Today we are announcing a $5.7 billion, or Rs 43,574 crore, investment in Jio Platforms Ltd, part of Reliance Industries Ltd, making Facebook its largest minority shareholder," the company said in a statement.
Reliance, in a separate statement, said the investment by Facebook values Jio Platforms at Rs 4.62 lakh crore pre-money enterprise value ($65.95 billion, assuming a conversion rate of Rs 70 to a US dollar).
Jio Platforms, a wholly-owned subsidiary of Reliance Industries Ltd (RIL), houses digital services of the group. Reliance Jio Infocomm is a wholly-owned subsidiary of Jio Platforms.
The Facebook deal is part of value unlocking by RIL to cut debt. RIL has been seeking strategic partnerships across its businesses while targeting to deleverage its balance sheet.
RIL was also the biggest contributor in Wednesday's market rally where the 30-share BSE index rose by 742.84 points or 2.42 percent to close at 31,379.55.
It said that Facebook's investment into this entity will further Reliance Industries' digital initiatives and will help in deleveraging.
(Edited by Suman Singh)
How has the coronavirus outbreak disrupted your life? And how are you dealing with it? Write to us or send us a video with subject line 'Coronavirus Disruption' to [email protected]