RIL shares rise over 1% after retail arm buys stake in delivery firm Dunzo

Shares of Reliance Industries Ltd (RIL) were among the top gainers today after the conglomerate's arm Reliance Retail acquired a 25.8% stake in Dunzo for $200 million, a leading e commerce player as it looks to expand its presence in the online grocery delivery business.

The large cap stock rose 1.69% to Rs 2,457 against the previous close of Rs 2,416 on BSE. RIL stock trades higher 5 day, 20 day, 100 day and 200 day moving averages but lower than 50 day moving averages. RIL share has gained 27.79% in one year and risen 3.12% since the beginning of this year.

Also read: Reliance Retail invests $200 mn in Dunzo; to pick 25.8% stake

Total 1.34 lakh shares of the firm changed hands amounting to turnover of Rs 32.69 crore on BSE. Market cap of the conglomerate rose to Rs 16.53 lakh crore. The share hit 52 week high of Rs 2,750 on October 19, 2021 and 52 week low of Rs 1,830 on January 29, 2021.

RIL said its retail arm led a $240 million funding round in Bengaluru-based Dunzo which offers fast delivery of groceries and medicines and even offers to pick up and drop off documents and other items. Other existing investors were Lightbox, Lightrock, 3L Capital and Alteria Capital.

According to an exchange filing by the Reliance Industries Limited, the capital will be used to further Dunzo's vision to be the largest quick commerce business in the country, enabling instant delivery of essentials from a network of micro warehouses while also expanding its B2B business vertical to enable logistics for local merchants in Indian cities.

Dunzo, which counts Alphabet Inc's Google and Lightrock among its backers, will use the funds to expand to 15 cities from its current seven-city operation.