Reliance Industries (RIL) rose 2.29% to Rs 1999.9 after the company announced that the Public Investment Fund (PIF) will invest Rs 9,555 crore (approximately $1.3 billion) for an equity stake of 2.04% into Reliance Retail Ventures (RRVL).
This investment values RRVL at a pre-money equity value of Rs 4,587 lakh crore (approximately $62.4 billion).The investment in RRVL follows PIF's earlier acquisition of a 2.32% stake in Jio Platforms, the digital services subsidiary of RIL. It will also strengthen PIF's presence in India's promising retail market segment.
Reliance Retail, a subsidiary of RRVL, operates India's largest, fast-growing retail business serving close to 640 million footfalls at its ~12,000 stores across the country. Reliance Retail's vision is to galvanize the Indian retail sector through its new commerce strategy, serving millions of customers by empowering millions of micro, small and medium enterprises (MSMEs).
Mukesh Ambani, the chairman and managing director (MD) of RIL, said: "We at Reliance have a long-standing relationship with the Kingdom of Saudi Arabia. PIF is at the forefront of the economic transformation of the Kingdom of Saudi Arabia. I welcome PIF as a valued partner in Reliance Retail and look forward to their sustained support and guidance as we continue our ambitious journey to transform India's retail sector for enriching the lives of 1.3 billion Indians and millions of small merchants."
Separately, RIL announced on Thursday that the SAT, by a 2:1 majority order, has dismissed the company's appeal against SEBI order dated 24 March 2017, in the matter relating to the sale of RPL shares by the company in November 2007. The company will examine the order passed by the SAT. The company, under proper legal advice, will prefer an appeal to the Supreme Court of India and is confident of vindicating its position.
Shares of RIL have risen 8.1% in three trading days from its closing low of Rs 1849.45 on 3 November 2020.
RIL's consolidated net profit fell 15.05% to Rs 9,567 crore on 25.50% decline in net sales to Rs 1,11,236 crore in Q2 September 2020 over Q2 September 2019.
RIL is India's largest private sector company. Its activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and digital services.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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