Reliance Industries informed that its subsidiary Reliance Retail Ventures (RRVL) has acquired 7,86,191 equity shares representing 100% of the equity share capital of Shri Kannan Departmental Store (SKDS).
The scrip was currently trading 0.81% higher at Rs 1350.
RRVL has acquired the stake for a consideration of Rs 152.5 crore, the company said in an exchange filing made after market hours yesterday.
SKDS, incorporated on 15 September 1999, is engaged in the business of retailing fruits & vegetables, dairy, staples, home & personal care and general merchandise to consumers. SKDS currently operates 29 stores across Coimbatore and nearby areas with a retail area of over 6 lakh square feet.
SKDS reported revenue from operations of Rs 415 crore, Rs 450 crore and Rs 481 crore and net profit of Rs 2 crore, Rs 3 crore and Rs 4 crore in FY2018-19, FY2017-18 and FY2016-17, respectively.
The aforesaid investment will further strengthen the group's retail operations and presence in the state of Tamil Nadu and will further enable retail and new commerce initiatives.
RIL added that no governmental or regulatory approvals were required for the said investment. The investment does not fall within related party transactions and none of RIL's promoter / promoter group / group companies have any interest in the transaction.
Reliance Industries (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. The company's segments include refining, petrochemicals, oil and gas, organized retail and others.
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