Reliance Becomes 10 Lakh Crore Company

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WHAT IS MARKET CAPITALIZATION?

It is the aggregate valuation of the company based on its current share price and the total number of outstanding stocks.
It is calculated by multiplying the current market price of the company’s share with the total outstanding shares of the company.
A company has 50 million outstanding shares and the current market price of each share is Rs100.
Market capitalization of this company will be- 500,00,000 x 100=Rs 200 crore

The number of shares of RIL are approx. 3.1 billion 3.1 billion x 1580 = Rs 10 lakh crore
Ambani family, holds approx. 46.32% of the total shares.
Whereas the remaining 53.68% shares are held by public shareholders, including FII and corporate bodies.
Life Insurance Corporation of India is the largest non- promoter investor in the company, with 7.98% shareholding.

Reliance, has benefited in a number of ways.
It operates the world’s biggest oil-refining complex in Gujarat, which can process low-quality crude and turn it into higher-grade fuels, partly protecting it from volatility in prices.
Reliance gets two-third of its revenue from energy.
Mukesh Ambani had earlier this year announced plans to cut RIL’s net debt to zero in 18 months through various measures.