Reliance values retail arm at ₹2.4 lakh crore

Offers 1:4 share swap to retail unit staff

Reliance Retail has been valued at ₹2.4 lakh crore, with its parent Reliance Industries Limited (RIL) offering one share in RIL for every four shares held in the retail arm to its employees under a share swap scheme.

RIL shares on the BSE dipped 1.94% to ₹1,515.95 in a weak Mumbai market on Thursday, valuing the company at ₹9,60,991.56 crore, implying a valuation of ₹2,40,248 crore for its unlisted retail arm.

This is double the valuation of ₹1,20,388.9 crore for Avenue Supermarts Ltd., that owns and operates the D-Mart retail chain in India.

According to a notification on RIL’s website, the stock swap scheme will be applicable to Reliance Retail employees who were allotted shares or restricted stock units, under various employee stock options schemes.

The proposed scheme will not alter the capital structure of any of the companies.

“This will provide liquidity to Reliance Retail employees as RIL shares are listed, while Reliance Retail’s are not,” said a source in the know of the development.

RIL chairman Mukesh Ambani, during the company’s annual general meeting, promised to list the retail and telecom arms after selling strategic stakes to investors by 2024.

Reliance Retail is an unlisted subsidiary of Reliance Retail Ventures and an indirect subsidiary of RIL.

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Printable version | Feb 28, 2020 7:01:24 PM |

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