Report Says Walmart In Talks To Pick Up Stake In Reliance Retail

Oil-to-telecom conglomerate Reliance Industries (RIL) is in discussions to sell a minority stake in its retail business to Walmart Inc, a report suggested on Monday.

The world’s largest retailer is emerging as an early candidate to pick up a stake in India’s largest retail company, the Morning Context said citing an executive familiar with the development.

On Saturday, RIL's retail arm Reliance Retail Ventures (RRVL) inked a deal with Kishor Biyani-promoted Future Group for acquiring its retail & wholesale business and the logistics & warehousing business as going concerns on a slump sale basis for a lumpsum total consideration of Rs 24,713 crore.

The acquisition would help Reliance Retail’s online segment in building a deep discounting strategy for JioMart, the e-commerce venture that competes with Amazon and Flipkart.

Interestingly, Bengaluru-headquartered Flipkart, which was acquired by Walmart for $16 billion in 2018, said its wholesale unit will acquire parent Walmart’s loss-ridden cash-and-carry business in India.

Reliance, which recently launched JioMart in 200 cities, now averages 250,000 orders a day within weeks.

In a string of deals since April, RIL has sold a total of over 33 per cent stake in its Jio Platforms unit and raised Rs 1,52,056 crore from marquee investors and tech majors such as Google and Facebook.

The recent deal with Future Group, adds substantially to the scale of business of Reliance Retail, which is already India’s largest retailer.

Global brokerage Nomura believes the acquisition of Future Group's retail business will help Reliance Retail scale its position in the market.

"A combined entity with larger market share will also increase potential strategic investor interest, in our view," said Nomura analysts.

According to CLSA, RIL-Future Group deal further cements Reliance’s position as India’s largest retailer by expanding its retail outlets by 15 per cent and retail footprint and warehousing area by over 80 per cent, and will also add 4.1 per cent to Reliance’s market share of organised retail and take it to 17.8 per cent.

Goldman Sachs believes that after doubling EBITDA over the last four years, RIL can double it again by FY25 as the consumer businesses – telecom and retail -- are on the cusp of a strong growth period.

The global brokerage forecasts the consumer businesses to deliver FY20-25 EBITDA CAGR of around 30 per cent and drive over 50 per cent of EBITDA contribution starting FY23, reaching 60 per cent by FY25, in comparison with 35 per cent and 15 per cent in FY20 and FY18 respectively.

Sandip Ginodia , CEO

ALTIUS INVESTECH PVT LTD

We deal in over 60 unlisted companies with 15 years of experience

For latest prices visit : www.abhisheksecurities.com/unlisted.htm / call : 09830271248 .

Email : ginodiasandip1@gmail.com

Reliance's JioMart is averaging half a million orders per day; WhatsApp driving growth

JioMart , Reliance's online-to-offline commerce platform that launched in May , has scaled up rapidly, riding on the pandemic-fuelled digital acceleration. The service, which went live in 200 cities across India, is currently processing an average of 500,000 orders per day. " We can go even higher on peak days", Jio Platforms CEO Kiran Thomas revealed at the Facebook for Fuel India 2020 event. He said, "JioMart is empowering millions of kiranas and small merchants through the simple and secure platform of WhatsApp, and linking them to Reliance Retail's pan-India supply chain. We expect to grow manifold in future, and are optimistic about enabling new cohorts of users and making it easier for them to shop for daily essentials." "Customers are transacting seamlessly on JioMart and the conversational nature of the service enabled by WhatsApp has made people adapt to it intuitively," he added. Reliance also stated that it will continue t

TCS merger with TCS e serve

The board of Tata Consultancy Services (TCS) in its meeting on 18 October 2012 has approved the composite scheme of arrangement between TCS, TCS e-Serve (e-Serve) and TCS e-Serve International (TEIL). The composite scheme of arrangement provides for merger of e-Serve into TCS and demerger of TEIL's special economic zone (SEZ) undertaking(s) to TCS. The appointed date proposed for this scheme is 01 April 2013. TCS holds 96.26% of the paid up equity share capital of e-Serve. TEIL is a wholly owned subsidiary of e-Serve. As per the terms of the scheme of arrangement, shareholders of e-Serve (other than TCS) will receive 13 equity shares of Re 1 each of TCS for every 4 equity shares of Rs 10 each of e-Serve held by them. The board has approved the scheme of merger of Computational Research Laboratories (CRL) and Retail FullServe (RFL) with TCS. The proposed appointed date for the merger of CRL is 01 October 2012 and for the merger of RFL is 01 April 2012. Computational Res

Stock broker SMC Global files for IPO

F inancial services company SMC Global Securities has filed draft red herring prospectus with SEBI for public issue of 1,58,67,380 equity shares of face value of Rs 2 each. The issue comprises a fresh issue of 79,33,690 equity shares by the company and an offer for sale of 79,33,690 shares by Millennium India Acquisition Company Inc. As of September 30, 2012, "We service our broking clients through a network of 43 branches and 2,521 registered sub-brokers and authorized persons spread in more than 500 cities and towns. We have also established an office in Dubai for brokerage and trading activities in that region," the company said. SMC has reported a loss of Rs 0.42 crore and total revenues of Rs 292.24 crore in the year ended March 31, 2012. "The proceeds of the fresh issue shall be utilised for margin maintenance with stock exchanges; part repayment of term loan; investments into subsidiary, SMC Comtrade; and general corporate purposes," according to p

Abhishek Securities

Search This Blog