Skip to main content

Silver Lake Picks 1.75% Stake In Reliance Retail For ₹7,500 Cr

 


Reliance Industries Ltd. now starts raising funds in its retail unit. Silver Lake marks the start of fundraising in retail by committing to invest ₹ 7,500 crore in Reliance Retail Ventures Ltd. (RRVL) – the company that bought Future Group’s assets. (Read: Deleveraged: Understanding the Reliance-Future Deal)

This investment by Silver Lake values RRVL – the holding company of retail unit – at a post-money equity value of ₹ 4.29 lakh crore. Silver Lake will hold a 1.75% stake in RRVL on a fully diluted basis.

This effectively values Reliance’s retail arm at a valuation of ₹ 4,21,500 crore which is roughly 30% of the valuation of the whole company.

A few days back, RRVL conducted a private placement where it issued 17.1 crore shares to RIL at ₹ 682.25. The total fund raised was close to ₹ 11,650 crore. This might have been done by the company to fund the Future Group acquisition and to set a precedence to value the retail arm.

Also, the new shares issued to Silver Lake is been done at ₹ 682.25, at the very same price.

We are yet to get clarity, whether Vanishree Commercials Pvt. Ltd. and Infotel Infocomm Enterprises Pvt. Ltd. are Reliance Promoter Group companies or Reliance Industries’ subsidiaries.

The structure of RRVL is similar to that of Jio Platforms Ltd. Like Jio Platforms is the holding company of mobile, broadband, and other tech platforms, RRVL is the holding company that houses RIL’s own retail unit, various other retail investments, and now also the Future Group assets.

Reliance Industries not only used to own equity shares in both these companies but also optionally convertible preference shares.

Jio Platforms after raising close to ₹ 1,52,500 crore said that it will retain only ₹ 22,980 crore, while the remaining would be transferred to the parent company – RIL. This will be transferred via redeeming the optionally convertible preference shares held by Reliance Industries in Jio Platforms.

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

Comments

Popular posts from this blog

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

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

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