RIL sheds 4% as stake sale to Saudi Aramco undergoes re-evaluation

NEW DELHI: Shares of Reliance Industries dropped as much as 4 per cent in early trade on Monday as Mukesh Ambani-led company scrapped a proposed deal to sell a 20 per cent stake in its oil refinery and petrochemical business to Saudi Aramco.

Reliance’s scrip touched a low of Rs 2368.20 on the BSE as against Rs 2472.75 at previous close.

The decision came after Reliance missed two self-imposed deadlines to settle the transaction, in which the asking price from the Saudi state-owned giant was $15 billion.


The changing nature of the business portfolio has prompted Reliance and Saudi Aramco to mutually determine that it would benefit both parties to undertake a re-evaluation of the planned investment in the O2C (oil-to-chemical) business, the Indian conglomerate announced late Friday.

The 20 per cent sale of stake in the unit was announced in 2019 but was put on the backburner because of the outbreak of the COVID-19 pandemic and the subsequent crash in global oil prices due to low demand.

Accordingly, the on-going application in the National Company Law Tribunal for segregating the O2C business from Reliance is being withdrawn, reports said.

Reliance shall carry on being Saudi Aramcos preferred partner for investments in India’s private sector and will collaborate with the company and the Saudi Arabian Basic Industry Corporation for investment in the West Asian country.