Reliance Industries to sell another 8-10% stake in its retail arm: Report

Mukesh Ambani-led Reliance Industries is reportedly looking to sell another 8-10% stake in Reliance Retail Ventures Limited (RRVL) 

According to an ET report, The stake sale would be completed in several tranches over a period of 12-15 months. The report said that the stake sale would help the company further expand, pay the debt, and prepare for the public listing.

The current valuation of $100 billion of its retail arm is too large for the market to absorb. The company aims to sell another 7-10% stake to make the IPO size manageable, the report added.

It’s worth mentioning that Reliance Retail’s net debt has jumped significantly from Rs 1,600 crore to Rs 37,500 crore in FY23, the company filings revealed. It’s worth noting that the rise was driven by a 70% increase in capex to a staggering Rs 51,400 crore.

The development comes after Qatar Investment Authority (QIA) said it will invest Rs 8,278 crore for a 0.99% stake in RIL’s retail arm, valuing the company at $100 billion.

Reliance Retail operates India’s largest retail business with a network of over 18,500 stores and digital commerce platforms across grocery, consumer electronics, fashion and lifestyle, and pharma. 

Earlier this week, The company announced the launch of its youth-focused fashion retail format, Yousta, with the opening of its first store in Hyderabad’s Sarath City Mall. According to the company, The store targets consumers in the age group of 15-25 years.

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