Reliance Retail, billionaire Mukesh Ambani’s retail unit that sells everything from fresh foods to high-definition television sets costing thousands of dollars, has become the fourth Indian company to be valued at more than $100 billion.
Unlisted shares of Reliance Retail have more than trebled since January last year to trade between Rs 1,500 and Rs 1,550. At Rs 1,500 a share, the company is valued at Rs 7.50 lakh crore.
Last year RIL tweaked mandatory share swap ratios of Reliance Retail and began stake sales to global private equity funds.
“Currently, Reliance Retail shares are traded in the range of Rs 1,500 and Rs 1,550 apiece,” the business daily quoted Sambhav Aggarwal of Arms Securities as saying. Arms Securities is a Delhi-based firm, which deals in unlisted shares. “The premium has more than doubled since last year when the company sold stakes to raise money.”
Worth mentioning here is that in December 2019, when Reliance Retail shares were trading at Rs 900 apiece, Reliance Industries announced a scheme of arrangement where Reliance Retail shareholders were offered one share of RIL in exchange of four shares of Reliance Retail. This scheme valued the shares of Reliance Retail at about Rs 380 per share. As a result, Reliance Retail shares declined to Rs 400 per share. However, later in January, in an extraordinary general meeting (EGM), Reliance made the share-swap scheme for shareholders in the retail venture optional as against mandatory earlier. Since then, the stock has rallied sharply in the unlisted market.
For the quarter ended December 31, 2020, Reliance Retail posted an 88% year-on-year jump in net profit at Rs 1,830 crore on a turnover of Rs 37,845 crore. The management early this year said that its grocery business and electronics stores maintained double-digit growth while the fashion and lifestyle business delivered a strong rebound, surpassing pre-Covid levels.
For FY21, the company is expected to report a net profit of Rs 5,570 crore on revenues of Rs 1,35,310 crore.
(This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.)
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