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Reliance Industries shares gain nearly 2% on acquisition of global toy firm Hamleys

"Reliance Brands Ltd, a subsidiary of Reliance Industries, and C Banner International Holdings, a Hong Kong-listed company, today signed a definitive agreement for Reliance Brands to acquire 100 per cent shares of Hamleys Global Holdings Ltd, the owner of Hamleys brand, from C Banner International," the company said in a filing to the BSE.

twitter-logo BusinessToday.In   New Delhi     Last Updated: May 10, 2019  | 13:18 IST
Reliance Industries shares gain nearly 2% on acquisition of global toy firm Hamleys
Mukesh Ambani-led RIL acquired 100% stake in toy brand Hamleys for GBP 67.96 mn

Reliance Industries shares rose nearly 2 per cent, snapping four straight sessions of fall, in early deals on Friday after Mukesh Ambani-led company acquired Hamleys Global Holdings Limited, the owner of British toy brand Hamleys, for a cash consideration of GBP 67.96 million.

Boosted by the development, RIL share price gained as much as 1.81 per cent and touched an intra-day high of Rs 1,277.90 against previous close level of Rs 1,255.15 on the Bombay Stock Exchange. Paring some of early gains, the scrip was currently trading at Rs 1,270.50, up 1.22 per cent.

In a similar trend, RIL shares were currently trading 1.09 per cent higher at Rs 1,270.20 apiece on the National Stock Exchange. The scrip opened at Rs 1,265, against previous close level of Rs 1,256.45, and touched an intra-day high and low of Rs 1,277.70 and Rs 1,260.50, respectively.

Also Read: Reliance Industries' market cap takes a hit of $13.76 bn in 4 days as shares fall

"Reliance Brands Ltd, a subsidiary of Reliance Industries, and C Banner International Holdings, a Hong Kong-listed company, today signed a definitive agreement for Reliance Brands to acquire 100 per cent shares of Hamleys Global Holdings Ltd, the owner of Hamleys brand, from C Banner International," the company said in a filing to the BSE.

Hamleys, which currently operates 167 stores across 18 countries, has been passing through tough phase as its profitability has shriked in recent times. The toy maker has reported a profit after tax (PAT) of 2.44 million pounds in financial year 2018 as compared to a loss of 11.24 million pounds in last fiscal, as per the Economic Times report.

Also Read: Reliance Industries arm acquires British toymaker Hamleys for undisclosed sum

On Thursday, RIL shares closed 3.41 per cent lower at Rs 1,255.15, after brokerage firm Morgan Stanley downgraded the Mukesh Ambani-owned company to "equal-weight" with price target of Rs 1,349 per share. The stock has plunged 10.8 per cent in the last four trading session, taking the overall market capitalisation loss to more than Rs 96,288 crore (over USD 13.76 billion) during this period. The investors remained concerned over RIL's rising debt, and weak gross refining margin. RIL has an outstanding debt of Rs 2,87,505 crore and it grew by Rs 69,000 crore in financial year 2019 because of its investments in Reliance Jio.

Edited by Chitranjan Kumar

Also Read: Share Market Live: Sensex up 96 points, Nifty at 11,329; PNB Housing, PC Jeweller top gainers

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