- Reliance Industries (RIL) shares hit a record high of Rs 2,218, up 3 percent on BSE in Thursday’s early morning trade with market cap crossing $200 billion.
Reliance Industries (RIL) shares hit a record high of Rs 2,218, up 3 percent on BSE in Thursday’s early morning trade, with the market capitalization (market-cap) close to Rs 15 lakh crore which means it has crossed $200 billion capitalizations. It surpassed its previous peak in intra-day trade of Rs 2,198.70, touched on July 27, 2020.
In the past two trading days, the stock has risen 5 percent after Silver Lake agreed to invest Rs 7,500 crore ($1 billion) in Reliance Retail Ventures (RRVL) on Wednesday. Reliance Retail, an RRVL subsidiary, operates India’s biggest, fastest-growing, and most profitable retail company serving nearly 640 million footfalls through its 12,000 nationwide stores.
The combined market cap of RIL ‘s fully paying and partially paid shares close marks of Rs 15 lakh crore
The company’s partially paid (PP) shares traded at Rs 1,324, 4.4 percent higher after reaching a high of Rs 1,324 in intra-day trading on the BSE. PP shares’ market cap was at Rs 55,882 crore, raising the total market cap to Rs 14.61 trillion. RIL market cap to hit the Rs 15 lakh crore mark is less than 3 percent away.
KKR & Co. is in advanced talks to invest at least $1bn in RIL’s retail sector, according to a Bloomberg report. “KKR is in talks about a stake in RRVL, a subsidiary of India’s largest retailer, said the people who asked not to be named because the information is not public. The private equity firm could invest as much as $1.5 billion and an announcement could come as soon as this month,” Bloomberg said.
“Recent media reports also suggest that Reliance Retail may give investors a stake in Jio Platform (telecom). Reliance Retail has recently announced that Future Group would be acquired. While these developments can raise concern, we believe that given the retail opportunity, there is enough headroom for growth for peers, “analysts at Jefferies said in a market update.
Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries Limited, recently announced that it is acquiring the retail, wholesale, logistics, and warehousing business of Future Group on a slump-selling basis for Rs 24,713 crore, subject to adjustments as provided for in the composite arrangement scheme. A recession selling is when a company is sold without assigning values to the individual assets and liabilities for a lump sum valuation as reported by CNBC.
The acquisition of Retail Business of Future group and the investment by Silver Lake has propelled market cap and share prices. A recent report suggests that Reliance is offering 40 percent of Reliance Retail to Amazon for $20 billion.
