RIL share price rallies over 4% after ADIA investment in Mukesh Ambani’s retail biz; stock up 165% since March

By: |
October 7, 2020 10:38 AM

In less than a month, Reliance Industries Ltd has raised a total of Rs 37,710 crore in exchange of 8.48 per cent stake in Reliance Retail Ventures Ltd (RRVL).

RIL, reliance industries ltd, mukesh ambaniFrom March lows of Rs 868, RIL shares have rallied over 165 per cent on back to back investments in digital and retail businesses

RIL share price jumped over 4 per cent in early trade on BSE to trade at Rs 2,305.20 apiece, a day after Mukesh Ambani-controlled company announced Rs 5,512.5 crore investment from the Abu Dhabi Investment Authority (ADIA) in its retail business. In less than a month, Reliance Industries Ltd has raised a total of Rs 37,710 crore in exchange of 8.48 per cent stake in Reliance Retail Ventures Ltd (RRVL). The Abu Dhabi Investment Authority (ADIA) investment values RRVL at a pre-money equity value of Rs 4.285 lakh crore. The oil-to-telecom conglomerate has received investment from over half a dozen global firms including Silver Lake, KKR, General Atlantic, Abu Dhabi sovereign wealth fund Mubadala Investment Co, GIC, TPG and ADIA. 

From March lows of Rs 868, RIL shares have rallied over 165 per cent on back to back investments in digital and retail businesses. Prior to ADIA investment, Singapore’s sovereign wealth fund General Atlantic and global investment firm TPG announced to put in Rs 7,350 crore for a total of 1.6 per cent equity stake in RIL’s retail business. So far, RIL has announced seven such investment deals for Reliance Retail Ventures Ltd. 

So far of the 13 investors in RIL’s digital arm Jio Platforms, six have already invested in Reliance Retail Ventures Ltd. Of the 13 global investors in Reliance Jio, four investors, Facebook, Google, Qualcomm, Intel, were strategic and technology majors. For the year ended March 31, 2020, RIL posted a consolidated turnover of Rs 659,205 crore, cash profit of Rs 71,446 crore, and net profit of Rs 39,880 crore. While  RRVL reported a consolidated turnover of Rs 162,936 crore and net profit of Rs 5,448 crore for the year ended March 31, 2020.

Around 10.25 AM, RIL shares were trading 4.12 per cent higher at Rs 2,304.80 apiece, as compared to a 0.69 per cent rise in the S&P BSE Sensex. At the time of writing, total market capitalisation of RIL stood at Rs 15.55 lakh crore.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Market LIVE: SGX Nifty hints at gap-up start for Sensex, Nifty; Equitas SFB IPO subscribed 39% on day 2
2Bonds, CPs save the day as loan growth languishes
3Sensex , Nifty end higher as IT stocks pull up markets