RIL to invest ₹3.05 lakh crore in Maharashtra; here’s how the stock reacted

Shares of Reliance Industries (RIL) remained in focus today amid a couple of positive developments overnight. Billionaire Mukesh Ambani-led telecom-to-oil conglomerate has signed a memorandum of understanding (MoU) to invest ₹3,05,000 crore in Maharashtra across sectors such as new energy, retail, hospitality, green power and high-tech manufacturing. The announcement was made by Anant Ambani, non-executive director of RIL, on the sidelines of the World Economic Forum’s annual meeting in Davos, Switzerland.

In a separate development, Reliance Consumer Products Ltd (RCPL), the FMCG arm of the group, announced the acquisition of Maharashtra-based Sil Food India Private Limited. With this acquisition, RCPL aims to bring new life to SIL Foods’ storied brand and build on its heritage, leveraging its scale, tech capabilities, and deep understanding of the Indian consumer. SIL offers products in categories such as jams, sauces, mayonnaise, and canned goods.

Reacting to news, RIL shares opened a tad lower at ₹1,274.75 on the BSE after ending 2.46% lower at ₹1,277.30 in the previous session. In the early trade, the country’s most valued stock moved in a narrow range, hitting a high and low of ₹1,277.25 and ₹1,271.10, with market capitalisation hovering around ₹17.2 lakh crore.

The sentiment was dented after foreign brokerage Morgan Stanley cut target price of RIL to ₹1,606 from ₹1,662 earlier, while retaining an 'overweight' rating on the stock. The brokerage remains bullish on RIL’s new energy and AI infrastructure businesses, saying that they will likely become a large driver of earnings.

The share price of Reliance Industries has risen over 4% so far in January, whereas it lost over 14% in six months and 4% in the last one year. The counter is down 21% from its 52-week high of ₹1,608.95 on July 8, 2024, and 6% up from its 52-week low of ₹1,202.10 touched on December 20, 2024.

RIL signs MoU worth ₹3.05 lakh cr with Maharashtra govt

In a major development, the conglomerate and the Maharashtra government signed a Memorandum of Understanding (MoU) on the sidelines of the World Economic Forum summit at Davos. The company has proposed to invest ₹3.05 lakh crore to generate over 3 lakh employment opportunities in various sectors.

According to a statement released by the Chief Minister’s Office in Maharashtra, the “historic” deal will create over 3,00,000 employment opportunities across diverse sectors, including new energy, retail, hospitality, and high-tech manufacturing, under the leadership of Anant Ambani.

The CM Devendra Fadnavis thanked Anant Ambani for this historic investment which will boost Maharashtra’s growth. He said the pact will propel job creation on a large scale in sectors such as petrochemicals, polyester, renewable energy, green hydrogen, green chemicals, industrial area development, retail, data centres, telecommunication, hospitality and real estate.

Speaking on the development, Anant Ambani lauded Prime Minister Narendra Modi for his transformative efforts in building a Viksit Bharat, with RIL committed to contributing to a New India. He also thanked Maharashtra CM Devendra Fadnavis for positioning the state as the gateway to India’s $5 trillion economy and soon-to-be first trillion-dollar economy.

(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)