Reliance Retail has become the fourth Indian company to top $100 billion valuation mark. The company sells everything from grocery to electronics, through its chain of retail stores spread across the country.
Currently, unlisted shares of Reliance Retail are trading in the range of Rs 1,500 and Rs 1,550 apiece. At Rs 1,500 per share, the firm is valued at Rs 7.5 lakh crore, according to a report in The Economic Times.
The premium has more than trebled since January last year when the company sold stakes to raise money.
In December 2019, the shares of Reliance Retail were trading at Rs 900. The company announced a scheme where Reliance Retail shareholders were offered one share of RIL in exchange for four shares of Reliance Retail. After this scheme, shares of Reliance Retail fell to Rs 380 per share. In January, Reliance made this scheme optional as against mandatory earlier. Since then, the stock has performed well in the unlisted market.
Reliance Retail reported a 88.1 per cent quarter-on-quarter growth in consolidated net profit at Rs 1,830 crore for the third quarter ended December 31, 2020.
"With enough firepower, the company is perceived to be doing well, especially when citizens are looking for home deliveries amid a second wave of the virus," Vaishali Dhankani, founder UnlistedDaq Venture of Analah Capital told ET.
"In spite of no clarity on the IPO dates and which vertical of reliance Retail will come with an IPO, wealthy investors are looking at acquiring this stock from the private market," she added.
The company also plans to open 6,500-7,000 outlets, almost twice its previous highest number in FY19.