RIL shares jump 3% on report Reliance Retail in talks with QIA for investments
RIL shares rose 2.51 per cent to hit a high of Rs 2,547.25 on BSE. The scrip had been falling ever since the stock turned ex-date of demerger of financial services business.
- Jul 26, 2023,
- Updated Jul 26, 2023 12:13 PM IST
Shares of Reliance Industries Ltd(RIL) snapped a four-day losing run on Wednesday, as they surged 3 per cent on reports Qatar Investment Authority was in advanced negotiations with Reliance Retail to invest close to $950 million to $1 billion in the company, the ET reported citing people in the know. The Qatari sovereign fund is likely to invest at a $100 billion valuation, the report said.
This, the report said, would almost be double of the last round which was raised three years ago. Saudi Arabia’s Public Investment Fund invested $1.3 billion for a 2.04 per cent stake in Reliance Retail Ventures in 2020, ET reported. That deal valued the company at about $62.4 billion. QIA did not invest in that round.
Following the media report, the stock rose 2.51 per cent to hit a high of Rs 2,547.25 on BSE. The scrip had been falling ever since the stock turned ex-date of demerger of financial services business.
Earlier this week, foreign brokerage Nomura India said more unlocking opportunity at Reliance Industries was in the works following the demerger of Jio Financial Services (JFS).
It noted that the recent move to clean up Reliance Retail’s shareholding structure by buying back minority shareholders was a step towards unlocking value in the retail business and that RIL could progress on this in the coming year.
"We believe value unlocking from the Platforms business is also on the cards, albeit RIL could drive higher valuations for the business as its non-telecom platform businesses and enterprise operations ramp up further," Nomura India said in a note.
For Reliance Retail, Nomura India estimates revenue of Rs 3.3 lakh crore and Ebitda of Rs 23,300 crore with margins of 7.1 per cent. For FY25, it estimated overall revenue of Rs 3.99 lakh crore and ebitda of Rs 29,300 crore, with margins of 7.3 per cent.
"Over the next two years, we build in an overall revenue CAGR of 24 per cent and an Ebitda CAGR of 29 per cent," Nomura India said.
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Shares of Reliance Industries Ltd(RIL) snapped a four-day losing run on Wednesday, as they surged 3 per cent on reports Qatar Investment Authority was in advanced negotiations with Reliance Retail to invest close to $950 million to $1 billion in the company, the ET reported citing people in the know. The Qatari sovereign fund is likely to invest at a $100 billion valuation, the report said.
This, the report said, would almost be double of the last round which was raised three years ago. Saudi Arabia’s Public Investment Fund invested $1.3 billion for a 2.04 per cent stake in Reliance Retail Ventures in 2020, ET reported. That deal valued the company at about $62.4 billion. QIA did not invest in that round.
Following the media report, the stock rose 2.51 per cent to hit a high of Rs 2,547.25 on BSE. The scrip had been falling ever since the stock turned ex-date of demerger of financial services business.
Earlier this week, foreign brokerage Nomura India said more unlocking opportunity at Reliance Industries was in the works following the demerger of Jio Financial Services (JFS).
It noted that the recent move to clean up Reliance Retail’s shareholding structure by buying back minority shareholders was a step towards unlocking value in the retail business and that RIL could progress on this in the coming year.
"We believe value unlocking from the Platforms business is also on the cards, albeit RIL could drive higher valuations for the business as its non-telecom platform businesses and enterprise operations ramp up further," Nomura India said in a note.
For Reliance Retail, Nomura India estimates revenue of Rs 3.3 lakh crore and Ebitda of Rs 23,300 crore with margins of 7.1 per cent. For FY25, it estimated overall revenue of Rs 3.99 lakh crore and ebitda of Rs 29,300 crore, with margins of 7.3 per cent.
"Over the next two years, we build in an overall revenue CAGR of 24 per cent and an Ebitda CAGR of 29 per cent," Nomura India said.
Also read: Suzlon Energy shares in focus after Q1 results, management commentary
Also read: Tata Motors DVRs may see a gap-up start, says Nuvama. Here's why