RELIANCE RETAIL UNLISTED SHARES | LATEST SHARE PRICE & UPDATES

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Company Overview

Reliance Retail Ltd is India’s largest and most profitable omni-channel retailer and a subsidiary of Reliance Industries Ltd.  Founded in 2006 with the first store in Hyderabad, the company now operates a chain of 12,711 stores, across 7000 cities in India. The company is unlisted and 99.93% Reliance Retail Shares owned by Reliance Retail Ventures Limited, subsidiary of Reliance Industries Ltd.

Brands

The company operates its business through brands: 

  1. Reliance Fresh
  2. Reliance Smart
  3. Reliance Smart Point
  4. Reliance Jewels
  5. Trends Footwear
  6. AJIO
  7. Hamleys
  8. Reliance Mall
  9. Reliance Brands
  10. 7-Eleven
  11. Reliance Consumer Brands
  12. Jio Store
  13. JioMart
  14. Reliance Digital
  15. Reliance Trends
Business Model

Reliance Retail runs a chain of convenience stores, supermarkets, carry stores, specialty, wholesale cash and online stores. Its retail outlets sell food, grocery, toys, electronic goods, jewellery, footwear, apparel, home improvement goods, and farm implements. 

The company occupies more than 34 million sq. ft. retail area and hires 2,00,000 employees. The company’s membership loyalty base covers more than 150 million customers. The company sells more than 14 million litres of milk and 500 tonnes of fruits and vegetables every year. The company maintains 12 million sq feet of warehousing space and 250 distribution centres across 23 states in India. 

In 2020, the company launched an online shopping platform through JioMart to deliver groceries and fashion wear across 200 cities of India. Through Reliance Brands Limited, the company has also partnered with global retail brands – Burberry, Bottega Veneta, Canali, Armani, Furla, Gas, Boss, Marks & Spencer and others in the luxury, high-premium and high-lifestyle segment.

Besides retailing other brands, the company also has its own in-house brands to serve its clients better. In the food category, its brands are Snactac, Goodlife, Yeah, Desi Kitchen. In Personal Hygiene and home care, it markets its products under Puric, myhome, Enzo, Samvaad.  In the personal grooming and beauty product category, it markets its products under brand Petals, Glimmer and get real. 

The company has done selective acquisitions to fortify its market share in the Indian retail industry. In 2020, the company acquired online furniture company, Urban Ladder. The company achieved revenues of $ 21 billion in FY 2021. The company has achieved breakeven in 2013.

Registered Office

The Registered office of the company is located at 3rd Floor, Court House, Lokmanya Tilak Marg, Dhobi Talao, Mumbai – 400002.

Symbol:Reliance Retail Ltd.
Face Value (₹):10
ISIN:INE742O01010
Demat Status:NSDL & CDSL
Lot Size:15 Shares

Board of Directors

NameDesignationProfile
Mr. Mukesh D. AmbaniChairman and Managing Directorlinkedin
Ms. Nita M. AmbaniNon-Executive, Non Independent Directorlinkedin
Mr. Hital R. MeswaniExecutive Directorlinkedin
Mr. Nikhil R. MeswaniExecutive Directorlinkedin
Mr. P.M.S. PrasadExecutive Directorlinkedin
Mr. P.K. KapilExecutive Directorlinkedin
Mr. R.A. MashelkarIndependent DirectorNA Final 1
Mr. Adil ZainulbhaiIndependent Directorlinkedin
Mr. Mansingh L. BhaktaIndependent Directorlinkedin
Mr. Dipak C. JainIndependent Directorlinkedin
Mr. Dharam Vir KapurIndependent Directorlinkedin
Mr. Mahesh P. ModiIndependent DirectorNA Final 1
Mr. Yogendra P. TrivediIndependent Directorlinkedin
Mr. Ashok MisraIndependent Directorlinkedin

Key Business Highlights

  • Largest & most profitable retail company in India with 34 million sq. ft. retail area and presence in 7000 cities in India. 
  • Diversified retail presence in grocery, consumer electronics, fashion and lifestyle, and jewellery segments through multiple store concepts- neighbourhood stores, supermarkets, hyper stores, wholesale cash and carry stores and e-commerce (JioMart). 
  • Attractive growth investment opportunity for investors as penetration level of organised retail market in Indian retail market is at low 11% (FY2019) and expected to grow to 18% (FY2024). The growth rate of the Indian retail market is estimated to be 10% for the next 5 years. 
  • Exclusive retail business partnerships with many famous international brands such as Diesel, Superdry, Hamleys, Ermenegildo Zegna, Marks and Spencer. 
  • Backed by marquee investors- Silver Lake Partners, KKR, UAE’s Mubadala, ADIA, TPG, General Atlantic. 

Financial Highlights

Particulars2020-212019-202018-192017-18
Total Income (₹ Crores)1,37,2061,44,7881,15,32051,501
PAT (₹ Crores)4,5985,6143,2541,246
Diluted EPS (₹)4.938.885.152.29
Book Value per Share (₹)51.0336.6125.3718.17
Equity (₹ Crores)25,46418,27012,6574,989

Financial Charts

Historical Chart

Shareholding Pattern

Peer Comparison

  • Reliance Retail competes with many companies in multiple segments. Due to its omnichannel retailing business model, it competes with online retailers like Amazon, Flipkart, Grofers, BigBasket, and at the same time, it competes with physical retailers like D-Mart, Walmart Wholesale, Metro, future group, Big Bazaar, V-Mart.
  • In the jewelry retail segment, Reliance Jewels competes with Titan, while in fashion retail, it competes with many established offline players like Pantaloons, Westside, Max Fashion, Fab India, Nalli etc.

Media Updates

“RELIANCE RETAIL SEEKS Rs 5512 Crores INVESTMENT FROM ADIA”

Reliance Industries said a wholly-owned subsidiary of Abu Dhabi Investment Authority (ADIA) will buy 1.2% in Reliance Retail Ventures (RRVL) for Rs 5,512.5 crore.The investment values Reliance Retail at a pre-money level of Rs 4.3 lakh crore.

Read more:
https://economictimes.indiatimes.com/industry/services/retail/adia-to-invest-rs-5512-crore-in-reliance-retail/articleshow/78516866.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

“RELIANCE RETAIL RAISES NEW INVESTMENTS FROM TPG & GIC”

Reliance Retail rasises $4.4 Billion from American Private Equity Firm TPG & Singapore’s Sovergin wealth fund GIC. TPG has made investment of Rs. 1837.5 Crs & GIC has made investment of Rs. 5512.5 Crs. Through these 2 seprate deals RRL will sell 1.63% stake in the company.

Read more: https://www.businessinsider.in/business/news/mukesh-ambani-reliance-retail-has-now-raised-4-4-billion-with-fresh-investments-from-tpg-and-gic/articleshow/78457304.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

“MUBADALA TO INVEST Rs 6247 Crore in Reliance Retail “

Reliance Industries said on Thursday Abu Dhabi’s sovereign fund, Mubadala Investment Co, would invest Rs 6,247 crore in Reliance Retail Ventures for 1.4% stake . The latest deal has taken the total overseas investments announced in Reliance Retail in the past three weeks to nearly Rs 24,850 crore, for a 5.65% stake, making the company one of the hottest global investment destinations in recent months.

Reliance announced Rs 5,500 crore of investment in the retail venture — Rs 3,675 crore from General Atlantic and Rs 1,875 crore from Silver Lake.The new funding from Silver Lake is in addition to the Rs 7,500 crore.

The investments are part of Reliance’s plan to raise Rs 60,000-63,000 crore by selling a 15% stake in the retail venture.

Read more: https://economictimes.indiatimes.com/industry/services/retail/mubadala-to-invest-rs-6247-5-crore-in-reliance-retail-for-1-4-per-cent-stake/articleshow/78430540.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

“KKR invests RS. 5500 crore in Reliance Retail”

Reliance Industries on Wednesday said the private equity player KKR will invest Rs 5,550 crore into its retail arm Reliance Retail Ventures (RRVL).KKR’s investment translates into a 1.28% equity stake in RRVL on a fully diluted basis.

“Reliance Retail to Buy Future Group”

Reliance Retail Ventures Limited (RRVL), a subsidiary of Mukesh Ambani-owned Reliance Industries Ltd, announced that it is acquiring the entire retail, wholesale, logistics and warehousing businesses from the Future Group as a going concern basis for a total consideration of Rs 24,713 crore.

The merger will help Biyani to get rid of debt – both at the promoter level and in the listed entities level which were hit hard by the pandemic – resulting in the closure of several stores since March.

In a statement, Reliance said the acquisition is being done as part of the merger scheme in which Future Group is merging certain companies carrying on the retail businesses into Future Enterprises Limited (FEL). As per the plan, various Future group companies such as Future Retail Limited, Future Consumers Limited, Future Supply Chain Solutions Limited, Future Lifestyle Fashion Limited, Future Brands Limited and Future Market Network Limited will first merge into Future Enterprises Limited.

Subsequently, the retail and wholesale undertaking will be transferred to Reliance Retail and Fashion Lifestyle Limited (RRFLL), a wholly-owned subsidiary of RRVL. At the same time, the logistics and warehousing undertaking will be transferred to RVVL.

“Silver Lake invest Rs 7500 crore in Reliance Retail”

Silver Lake Partners is investing Rs 7,500 crore in Reliance Retail in exchange for a 1.75 percent stake.The investment values Reliance Retail at a pre-money equity value of Rs 4.21 lakh crore.This deal is significant as RIL is expanding its retail business and lining up a posse of global investors to take on rivals such as Amazon and Walmart-owned Flipkart in the world’s second most populous country.

“Reliance Retail’s EBITDA surged 56% in FY 2020”

Reliance Retail Limited (RIL) delivered yet another of highest ever revenue and EBITDA , during this pandemic situation. Revenue grew by 24.8% to Rs. 162,936 Crs & EBITDA grew by 56% to Rs. 9,654 Crs in FY 2020. Footfall was up by 17% to 640 million and registered/ loyal customer base was up by 40% with 125 million.

Read more: https://economictimes.indiatimes.com/markets/stocks/earnings/reliance-retails-q4-pre-tax-profit-jumps-33-to-rs-2556-crore/articleshow/75484751.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst 

 

Frequently Asked Questions (FAQs) on Reliance Retail Unlisted Shares

The buying and selling of unlisted shares, and pre-IPO shares is fully legal and valid.

The procedure to buy the Reliance Retail shares is fairly simple. Once you have settled on the price and quantity of the transaction, you would have to transfer the funds into the bank account of the seller. Once the funds are transferred and transaction details are shared with the seller, your demat account will be credited with the shares either on the same day of the fund transfer or before the end of the next working day.

In the secondary market, the transactions related to unlisted shares take place with the existing owners of the shares who are generally the employees or existing investors in the company. The company itself is not directly involved.

The Reliance Retail shares will get credited either the same day or before the end of the next working day when you transfer the funds into our bank account.

The minimum lot size varies on the basis of market conditions and demand and supply factors. To know the current lot size for Reliance Retail, please visit the stock page on our website: www.delistedstocks.in/current-offerings/reliance-retail/

There are many factors which influence the pricing of unlisted shares. Apart from the supply and demand factors, the latest transactions happened on the same stock, last funding round of the company, and valuation level of companies of the similar size affect the pricing of the unlisted shares.

Before IPO, there is no restriction on sale and transfer of your Reliance Retail shares. But once the shares are listed on the stock exchange, for retail investors, there is a minimum lock-in period 6 months after listing on the stock exchange.

Once the selling price and quantity of shares is agreed with us, we will provide you with an UTR (Unique Transaction Reference) number to transfer the shares. Once you have transferred the shares into our company’s demat account, funds are released into your bank account within 24 hours or before the end of the next working day of the transfer of the shares.

If your holding period is less than 2 years, then such income is treated as business income and liable to get taxed as per tax slab of the investor. If your holding period is more than 2 years, then your profits would be subject to long-term capital gains tax. The current short-term capital gain tax rate is 20% after indexation.

The trading in unlisted shares is governed by Securities & Contract (Regulation) Act, which comes under the preview of SEBI.  The SEBI regulations become applicable when the stocks of the company get listed on the stock exchange. There is a minimum lock-in period of 6 months for pre-IPO investors.

The major risk associated with investing in unlisted stocks is the liquidity risk. The possible exit route for investors is either to sell to another investor or wait till the company gets listed on the stock exchange.

Yes, NRI’s can also buy and sell Reliance Retail shares just like domestic investors. But their investment is on a non-repatriable basis.

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