Reliance shares hit record high as retail business goes the Jio way to raise funds
- Mukesh Ambani-led
RelianceIndustries shares hit a record high on Monday morning.
- Analysts believe that
Reliance Retail’s fundraise and the recent acquisition of Kishore Biyani’s Future Retail will give the company enough ammunition to take on global players like Amazon.
- On Wednesday, Reliance had announced the first big cheque for its retail venture from the American PE firm Silver Lake.
- The shares have rallied as Ambani is planning a Jio-like fundraising for his retail venture – Reliance Retail.
AdvertisementMukesh Ambani-led Reliance Industries shares hit a record high of ₹2356 on Monday morning. The shares have rallied as Ambani is planning a Jio-like fundraising for his retail venture – Reliance Retail.
The recent rally has added to Ambani’s wealth as he takes the 7th spot in the world’s richest list with a net worth of $83 billion, according to Bloomberg Billionaires Index.
On September 9 (Wednesday), Reliance had announced the first big cheque for its retail venture from the American PE firm Silver Lake. The investment firm pumped in $1 billion into Reliance’s retail unit in exchange for a 1.75% equity in the company.
But that’s not it. Reliance Retail is all set to raise a slew of
According to a report, Reliance could give up a 15% stake in its retail arm – Reliance Retail Ventures Limited.
Reliance Retail could raise as much as $5.7 billion at a valuation of about $57 billion (₹4.21 lakh crore). The current market value of RIL is ₹13.9 lakh crore, making the retail business worth about a third of the stock's worth.
Analysts believe that Reliance Retail’s fundraising and the recent acquisition of Kishore Biyani’s Future Retail will give the company enough ammunition to take on global players like Amazon. “With higher cash balance, recent acquisition of retail & wholesale business of Future Group along with stronger product portfolio and distribution reach, the company is well poised to give competition to Amazon in online space and other retailers,” said a report by IDBI Capital.
Reliance Retail’s fundraising comes after Ambani’s Jio platforms raised over $20 billion from marquee funds and technology giants like Facebook and Google.
Yatra's failed merger with Ebix dents the company's earnings in an already troubled quarter
Reliance Retail raises $1 billion from Silver Lake valuing the chain at $57 billion
- Upcoming bike launches in November: From Ducati Multistrada to Royal Enfield Meteor and KTM 250, to 2021 Honda CB1000R, here’s the list
- Researchers identify new drug to treat Covid-19 patients
- Ice drug worth 2 crore seized, 2 held
- Nearly a third of RIL’s profit is shaved off by the dent in refining
- Reliance Retail clocks nearly as much revenue as a year earlier as COVID shock abates — but the Amazon threat looms