Reliance Industries (RIL) was up 0.26% to Rs 1,570.60 after the company bought a 90.5% stake in e-learning products and services provider Funtoot for Rs 71.64 crore.
RIL said in a stock-exchange filing after trading hours on Monday that it made the acquisition through ed-tech unit Indiavidual Learning, which operates under the brand name Embibe.Embibe plans to invest another Rs 10 crore in Funtoot, operated by eDreams Edusoft, to increase its stake to 100%. The additional investment is subject to Funtoot achieving agreed milestones and is likely to be completed by December 2021, RIL said.
Funtoot incorporated in July 2010, develops e-learning products and provides practice, testing and analysis modules to school students for mathematics and science.
The Funtoot acquisition comes within days of RIL acquiring a majority stake in drone maker Asteria Aerospace and in software-as-a-service (SaaS) provider NowFloats Technologies.
Further, RIL and and British energy major BP Plc on Monday signed a partnership agreement to set up 5,500 petrol pumps under the brand Jio-BP. The venture is expected to be formed during the first half of 2020, subject to regulatory and other customary approvals.
Meanwhile, Reliance Industrial Investments and Holdings (RIIHL), a wholly-owned subsidiary of RIL, has signed binding agreements with Canadian asset manager Brookfield Infrastructure Partners for an investment of Rs 25,215 crore. The companies had announced the deal earlier on 19 July 2019.
Brookfield and its institutional partners will invest in the units to be issued by Tower Infrastructure Trust. After the closure of the deal, the trust will own the entire equity capital of Reliance Jio Infratel (RJIPL), RIL said in a regulatory filing.
RJIPL has a portfolio of about 1.30 lakh communication towers that forms the infrastructure backbone of Reliance Jio Infocomm's (RJio) telecommunication network. It plans to increase the total number of towers to about 1.75 lakh. Jio is an anchor tenant of the tower portfolio under a 30-year master services agreement.
The S&P BSE Sensex was up 282 points or 0.69% to 41,220.73.
In the past one month, the RIL stock jumped 7.68% to its current market price of Rs 1,570.60.
On the technical front, the stock's RSI (relative strength index) stood at 60.716. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.
The stock was trading above its 50-day moving average (DMA) placed at Rs 1,477.05 and 200-day moving average (DMA) placed at Rs 1,333.84.
RIL's consolidated net profit soared 18.3% to Rs 11,262 crore on 3.6% rise in net sales to Rs 1,48,526 crore in Q2 September 2019 over Q2 September 2018.
RIL is engaged in refining, including manufacturing of refined petroleum products, and petrochemicals, including manufacturing of basic chemicals, fertilizers and nitrogen compounds, plastic and synthetic rubber in primary forms.
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