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Any increase in promoter shareholding is seen by investors and wider market participants as renewed confidence in the company’s long-term prospects.
Shares of Reliance have had a difficult year so far, with the stock erasing about Rs 3.53 lakh crore in investor wealth. The stock fell over 6% in the year-to-date period.
The purchases were made within the limits permitted under Sebi regulations, which allow promoters to gradually increase ownership without triggering a mandatory open offer, subject to prescribed thresholds.
According to a PTI report, market purchases by the promoter group would have cost Rs 8,500-9,000 crore.
Also Read: Investors are watching Jio but Mukesh Ambani-led RIL’s Q1 surprise may come from refining
As of June quarter, Reliance Chairman Mukesh Ambani, wife and three children hold 1.61 crore shares, or 0.12% stake. His mother K D Ambani holds 3.14 crore shares, or 0.24%. Rest of the shares are held through promoter group entities with Srichakra Commercials LLP holding the largest at 10.93%. Devarshi Commercials LLP, Karuna Commerfcial LLP, and Tattvam Enterprises LLP hold 8.06% stake each.The move comes at a time when Reliance continues to invest heavily across its retail, digital, new energy, and consumer businesses while pursuing long-term growth opportunities.
The increase is unlikely to have any immediate operational impact but could be interpreted positively by investors as an expression of promoter conviction in Reliance’s earnings trajectory and future capital allocation plans.
What led to RIL share price fall this year
The company missed profit estimates in the last few quarters, with retail earnings slowing and the oil and gas segment hit by weaker output and softer price realisations. Retail margins were also affected by festive discounting, investments in hyper-local delivery startups and the impact of new labour codes.
The oil-to-chemicals business, which has long been Reliance’s biggest earnings engine, has faced its own questions. Reuters Breakingviews said in April that Reliance shares had underperformed the broader market as the Iran conflict weighed on refining, while windfall taxes, high freight costs and Chinese competition were among the concerns for the business.
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