RIL to re-evaluate O2C stake sale with Saudi AramcoRELIANCE - 2456 Change: -1.30 (-0.05 %)
News: Reliance Industries said that the company and Saudi Aramco will re-evaluate Aramco’s proposed stake investment in RIL’s oil to chemicals (O2C) business. The company has also withdrawn application with NCLT for segregation of O2C business from RIL.
Views: RIL and Saudi Aramco had signed a non-binding LoI for potential 20% stake investment in RIL’s O2C business by Saudi Aramco. O2C stake sale and subsequent value unlocking, which would have further strengthened balance sheet, is delayed. We await further clarity on timelines of stake sale. However, O2C business prospects have improved owing to increase in GRMs and fuel demand post second wave of Covid-19. It is expected to report steady profitability in the near term.