Mukesh Ambani’s retail unit is worth more than Tesco | Mint
Active Stocks
Mon Feb 26 2024 15:59:59
  1. Tata Steel share price
  2. 142.60 -1.99%
  1. Power Grid Corporation Of India share price
  2. 287.75 1.97%
  1. HDFC Bank share price
  2. 1,422.25 0.10%
  1. ITC share price
  2. 409.20 -0.58%
  1. State Bank Of India share price
  2. 759.00 -0.05%
Business News/ Companies / News/  Mukesh Ambani’s retail unit is worth more than Tesco
BackBack

Mukesh Ambani’s retail unit is worth more than Tesco

The valuation of Reliance Retail as set by Reliance is double that of Avenue Supermarts
  • Share owners in Reliance Retail Ltd. can exchange four shares for one of its listed parent Reliance Industries Ltd
  • For the year to March, Reliance’s organized retail revenue jumped 89% to ₹1.3 lakh crore in the yearPremium
    For the year to March, Reliance’s organized retail revenue jumped 89% to 1.3 lakh crore in the year

    A stock swap offer to help shareholders of billionaire Mukesh Ambani’s unlisted retail business monetize their investment has valued the unit at $34 billion.

    Share owners in Reliance Retail Ltd. can exchange four shares for one of its listed parent Reliance Industries Ltd., according to a so-called scheme of arrangement posted on the group’s website. With the parent’s latest market capitalization at 9.8 lakh crore, the share swap values the subsidiary at 2.4 lakh crore, according to Bloomberg’s calculation.

    Asia’s richest man is scouting for investors for the profitable retail unit. The share swap, which will help Reliance Retail employees monetize their illiquid stock options, values the company at more than Tesco Plc, the U.K.’s biggest supermarket chain. Ambani has promised to slash the group’s net debt zero to zero by March 2021 after an investment spree of $76 billion in the past five years, bulk of it on its massively disruptive telecom carrier.

    “We will induct leading global partners in these businesses in the next few quarters, and move toward listing of both these companies within the next five years," Ambani had told shareholders in August referring to the retail and telecom units.

    For the year to March, Reliance’s organized retail revenue jumped 89% to 1.3 lakh crore in the year. The earnings before interest and taxes jumped 169% to 55.5 billion rupees, according to a company statement which did not specify a net income for the business.

    Reliance Retail, with 10,901 stores across the country, runs India’s largest chain of neighborhood supermarket stores and consumer electronics stores besides being the top wholesale supplier to nation’s army of small shopkeepers.

    The valuation set by Reliance is double that of Avenue Supermarts Ltd., which runs India’s biggest supermarket chain. Tesco is valued at $32 billion.

    This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

    Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

    Catch all the Corporate news and Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates & Live Business News.
    More Less
    Published: 26 Dec 2019, 03:39 PM IST
    Next Story footLogo
    Recommended For You
    Switch to the Mint app for fast and personalized news - Get App