Six of top10 most valued firms add Rs 86,847.88 crore
Last week, six of the top 10 most valued firms together added Rs 86,847.88 crore in market valuation.
Shares of Reliance Industries on Wednesday rallied 3 per cent after the firm announced that US private equity firm KKR & Co will invest Rs 5,550 crore to buy a 1.28 per cent stake in its subsidiary Reliance Retail Ventures Ltd (RRVL).
The stock jumped 2.95 per cent to hit day’s high of Rs 2,276.50 on the BSE. But the scrip failed to maintain its gains during afternoon period and was trading 0.79 per cent higher at Rs 2,228.65.
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After hitting the day’s high of Rs 2,276.75 (up by 2.96 per cent) earlier in the day, company’s shares were trading up by 0.80 per cent at Rs 2,228.85
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“This investment values Reliance Retail at a pre-money equity value of ₹ 4.21 lakh crore. KKR’s investment will translate into a 1.28% equity stake in RRVL on a fully diluted basis. This marks the second investment by KKR in a subsidiary,” Reliance Industries said in a statement.
The latest investment in RRVL comes roughly two weeks after US private equity firm Silver Lake Partners agreed to buy 1.75 per cent stake in the venture for Rs 7,500 crore.
It is worth mentioning that this is the second investment by KKR in Reliance Industries (RIL) units. It had previously picked up a 2.32 per cent stake in the digital arm, Jio Platforms for Rs 11,367 crore.
Reliance Retail Limited, a subsidiary of RRVL, operates India’s largest, fastest-growing and most profitable retail business spanning supermarkets, consumer electronics chain stores, cash and carry wholesale business, fast-fashion outlets, and online grocery store JioMart. It operates almost 12,000 stores in nearly 7,000 towns.
Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said: “KKR has a proven track record of being a valuable partner to industry-leading franchises and has been committed to India for many years.”
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