Background
The Reliance group’s retail effort, Reliance Retail, is at the heart of consumer-facing businesses. It has established strong and lasting ties with millions of customers in a short period by offering them an unrivaled selection, great value proposition, superior quality, and unrivaled experience across all of its stores. Reliance Retail has democratized access to a variety of products and services across multiple segments for Indian consumers by operating a chain of neighborhood stores, supermarkets, wholesale cash & carry stores, specialty stores, and online stores.
The Reliance Retail IPO status
Reliance Retail’s unlisted shares have more than tripled in value since January last year, trading between Rs 1,500 and Rs 1,550. The company is worth Rs 7.50 lakh crore at Rs 1,500 a share. Last year, RIL adjusted Reliance Retail’s obligatory share swap ratios and began selling stakes to global private equity groups.
Reliance Retail shares are currently trading between Rs 1,500 and Rs 1,550 a share, according to Sambhav Aggarwal of Arms Securities, as quoted by the business daily. Arms Securities is a Delhi-based unlisted stock brokerage firm. Since the corporation sold stakes to raise money last year, the premium has more than doubled.
Reliance Industries launched a scheme of arrangement in December, when Reliance Retail shares were trading at Rs 900 apiece, in which Reliance Retail shareholders were offered one share of RIL in exchange for four shares of Reliance Retail. The shares of Reliance Retail were valued at around Rs 380 per share under this program. Reliance Retail’s stock dropped to Rs 400 per share as a result.
Later in January, during an extraordinary general meeting (EGM), Reliance changed the share-swap arrangement for retail venture shareholders from mandatory to optional. The stock has risen sharply on the unlisted market since then.
Reliance Industries Limited (RIL) is preparing to conduct Initial Public Offerings (IPOs) of its retail and oil-to-chemicals (O2C) businesses to take advantage of the market’s IPO frenzy. According to a banker familiar with the situation, at least one of the IPOs will go public this fiscal year.
Reliance Retail operates a convenience store, supermarket, wholesale cash & carry, and specialty store chain. These stores strive to provide variety and choice, as well as convenience and great value. This corporation operates retail locations in a wide range of categories around the country, as well as a huge number of partner brand stores.
The company announced that it has been debt-free and has raised more than Rs 1.68 lakh crore in just 58 days, implying that it will have one of the world’s strongest balance sheets.
In terms of market capitalization, Reliance Retail has eclipsed listed blue chips such as HDFC Bank and HUL.
Reliance Retail has a topline of almost 2 lakh crore as compared to DMart, which has a market capitalization of 1.5 lakh crore and a topline of 25,000 crores. As a result, it is around seven times the size of the topline.
Reliance Retail has surpassed the $100 billion value milestone, becoming the fourth Indian business to do so.
Why invest in Reliance Retail
Reliance Retail has established exclusive partnerships with several well-known international brands, including Diesel, Superdry, Hamleys, Ermenegildo Zegna, Marks and Spencer, Paul & Shark, Thomas Pink, Kenneth Cole, Brooks Brothers, Steve Madden, Payless Shoesource, Grand Vision, and many others.
For FY21, the company is expected to report a net profit of Rs 5,570 crore on revenues of Rs 1,35,310 crore.
In the midst of a second wave of the virus, the company is seen as doing well, especially when citizens are searching for home deliveries.
The reliance industry is an independent channel and is into leading companies and thus one can think of investment in Reliance. To know more about it check out our blogs on Babli Investment and keep looking for more updates. Babli Investments always keep the client’s money safe and give useful updates regarding how to invest money safely.