Abhishek Securities

  The board of Future Enterprises will meet on Saturday to finalise the sale of the group’s retail business to  Reliance Retail . The all-cash deal will see the  Mukesh Ambani  company take on Future Group’s debt and liabilities, and pick up a minority stake in the latter’s  FMCG  arm. According to the terms of the deal, valued at about Rs 29,000-30,000 crore, Future Group will merge five listed units across grocery, apparel, supply chain and the consumer business into  Future Enterprises Ltd   NSE 4.96 %  (FEL), which currently houses the group’s retail back-end infrastructure. FEL will then hive off all retail assets and sell them to RIL as a single unit, according to two people familiar with the matter. “Reliance will pay about Rs 13,000 crore to Future Group for clearing debt, another Rs 7,000 crore for its liabilities (including payments to landlords and vendors), and Rs 6,000-7,000 crore to the promoter group,” said one of the perso...

Large retail chains struggled in the quarter ended June as Indians stayed indoors amid the raging pandemic and stores re mained shut. But for Reliance Retail Ltd., India’s largest retailer, the period shows how Mukesh Ambani’s marriage of content, carriage and commerce is paying off. Indians faced the world’s most punishing restrictions after Prime Minister Narendra Modi announced a complete lockdown in March 24. Economy remained frozen for nearly two months, but for supply of essentials. Consumption of everything except staples collapsed. The pandemic forced Reliance Retail, operator of supermarkets, India’s largest consumer electronics retail chain, fast-fashion outlets and a cash-and-carry unit, to shut nearly half of the stores. Footfalls, the company said in its earnings presentation, tumbled nearly 57%, and about 39% in June alone. Revenue contracted 17%. Yet, it could have been much worse had it not been for connectivity, or the data recharges by Reliance Jio Infocomm Ltd....

We got featured in Economic Times! Reliance Retail, an unlisted subsidiary of RIL has more than double in value in the last 5 months, led by it's parent fundraising efforts . Current pricing seems steep considering a comparison with other retailing entities in the listed space. Let us know what you think of the same. Energy-to-telecom Reliance Industries (RIL) impressed Dalal Street all through June quarter with a series of stake sales in Jio Platforms and India’s biggest ever rights issues. Investors rewarded the company by doubling the stock price from its March low point. But an unlisted arm of the company has done even better. Shares of Reliance Retail (RRL), which trade in the unlisted market, have delivered about 150 per cent return on a year-to-date basis (YTD). Dealers in the market for unlisted shares say the scrip hovered at Rs 1,100 on June 30, the highest price in the unlisted market, after having risen steadily from around Rs 425-450 at the end of January 2020. The sto...