Reliance Industries Ltd (RIL) share rose over 4% in early trade today after the conglomerate's subsidiary Reliance Retail Ventures Limited (RRVL) bought a majority stake in online furniture startup Urban Ladder Home Decor Solutions. RIL share opened with a gain of 4.14% to Rs 2084 against previous close of Rs 2001 on BSE. Share of RIL was trading higher than 200 day moving averages but lower than 5 day, 20 day, 50 day and 100 day moving averages.
The share has gained 36.37% in one year and risen 32.34% since the beginning of this year.
Market cap of the firm rose to Rs 13.5 lakh crore.
Total 3.45 lakh shares changed hands amounting to turnover of Rs 69.74 crore on BSE.
The firm retail firm has acquired 96% stake in Urban Ladder's equity share capital for a cash consideration of Rs 182.12 crore. RRVL also has further option of buying the balance stake, which will take its shareholding to 100%, it said.
Reliance Retail has also has also proposed to make an additional investment of up to Rs 75 crore, which is likely to be concluded by December, 2023.
Urban Ladder's buyout is expected to set off consolidation among online furniture retailers, thereby creating a few large leading brands.
The eight-year-old startup, incorporated in India on February 17, 2012, operates a digital platform for home furniture and decor products.