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WHY HAS RELIANCE GROWN TO BE THE MOST IMPORTANT STOCK ON THE NSE INDIA?

IMPORTANCE OF RELIANCE

Why did Reliance Industries become India’s most valuable stock?
We all know that Mota Bhai or Mr. Mukesh Ambani is India’s wealthiest individual, but did you know that Reliance Industries has made its stockholders immensely wealthy as well? And wealthy, not only in terms of economic gains, but also in terms of getting a good night’s sleep knowing that their money, trust, and dreams are in the safest hands in the business.

RIL is the most valuable company on the NSE India today, with a massive market capitalization, but it wasn’t always like this. In today’s blog, we’ll learn how Reliance got to be the company it is today. Are you looking forward to it? Let’s get started…!!

The Beginning — As The Ambanis Put It, “Modest”

When Late Mr. Dhirubhai Ambani chose to quit his job in Yemen and come to India, the golden years of Reliance Industries began. Soon after, in Mumbai, the older Ambani began dealing yarn in a small apartment office. He had no idea he would one day be the founder of India’s largest corporation.

In 1977, Reliance’s founder chose to launch Reliance Textile Industries as an initial public offering (IPO) on the Indian stock exchange, which took the market by storm. When stock market participation was half as small as it is now, the IPO was oversubscribed by seven times…!! So it’s fair to say that Mr. Ambani has always had the faith of millions of Indians.

Motabhai Enters The Story—Living Up To The Faith

The older Ambani backed our darling Motabhai, or Mr. Mukesh Ambani, after years of accumulating a fortune. He began his illustrious career with Reliance Industries by focusing on backward integration, and in just 18 months, he established Reliance’s first mega-manufacturing complex in Patalganga.

Thanks to its double-engine growth, Reliance became the world’s top polymer producer by 1991. The Indians’ seeds of trust in Reliance Industries had matured into beautiful green trees by that time. But, underlying all of this optimism for the future, there was an episode that shaped Reliance Industries into the company it is today. Mr. Dhirubhai Ambani justified the name “Lanka Laga Dena” for the Kolkata bear cartel at that time.

The Bear Cartel vs. Reliance: 1980s

Reliance started a new offering at 10 rupees per equity share and rose to a high of 186 rupees in nearly a decade. This was enormous, and the money generated was more than 180 times that of the original. The Bears, being bears, took advantage of a shorting opportunity at the incorrect spot. Reliance shares were held by the majority of Indian retailers at the time.

Reliance was also announcing a rights offering at the time. Bears discovered certain flaws in the glass palace and began short selling Reliance shares. The Bears sold about 3.5 million equity shares on March 18th alone. This caused concern among retailers who believed in Reliance’s vision. The shopkeepers and the bear cartel had no idea that there was a problem.

In response to the bears’ short selling, Reliance’s NRI and HNI shareholders began taking delivery of the company, forcing the bears to end their short streak. The short covering was so insane that the stock rose from Rs. 121 to Rs. 201. That occurrence in Reliance’s history established Mr. Dhirubhai Ambani as the world’s greatest leader of Indian private enterprises.

This action by Dhirubhai and his staff assured retailers that their money would not be wasted if they put it in Reliance’s hands. Furthermore, since its establishment, Reliance Industries has been a consistent participant in the Nifty 50 index.

All of this contributes to Reliance’s position as the most valuable stock on the NSE India. As a result, it’s fair to assume that merchants and institutional investors have favoured Reliance.

The New India Oil Revolutions of Reliance – the 2000s

After dominating the polymer business, Reliance jumped on the petrochemical industry’s high tides and built India’s largest refinery in Jamnagar. Mr. Ambani quickly grew Reliance to become the world’s largest private petrol producer.

At Reliance, values and growth went hand in hand.

When Reliance decided to build a refinery in Jamnagar, they were aware that it would have an impact on the local environment. The giant corporation’s brains came up with a plan to boost the city’s image while also providing a cushion for their expansion.

They cultivated Asia’s largest mango grove. It all added up to a cleaner environment and more revenue for Reliance Industries.

A New Chapter After The Great Dhirubhai Ambani

What happened after Mr. Dhirubhai’s death heightened the Indian public’s perception of Reliance. Mukesh and Anil, two brothers, took over their father’s firm. Mukesh Ambani’s stock has a premium of over 2100 rupees after a decade, whilst Anil Ambani’s stock is a penny stock. This explains why Reliance Industries is so essential to the Indian people.

Early Prediction of the Future – Data
Mr. Ambani, the founder of Reliance Industries, saw prospects in data and began a new digital revolution by launching Jio in India. It only took a few months for Ambani to methodically take over the Indian telecom market with Reliance Jio. Following Reliance Jio’s explosive expansion, more than five telecom businesses have shut down. By providing the cheapest data to Indians, Jio established India as the world’s data hub.

Takeaway

Reliance Industries and its stockholders gained enormous heights of success under the able leadership of Mr. Mukesh Ambani, only to surpass the ordinary. Are you a one-of-a-kind individual because you own Reliance shares?

Not only that, but the mindset and power of building a long-term business begins with a small start and strong willpower.

Our warmest wishes for everyone to shine brightly in life.

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