RIL shares zoom 3% after buying majority stake in Abu Jani Sandeep Khosla

Shares of Reliance Industries Limited zoomed over 3 per cent to hit an intraday high of Rs 2,726.40 on BSE after Reliance Brands Limited (RBL) announced that it has signed an agreement to invest in Indian couturiers Abu Jani Sandeep Khosla (AJSK) for a 51 per cent majority stake.

RBL is a subsidiary of Reliance Retail Ventures Ltd and began operations in 2007. In the past five years, RBL has also invested in building and operating homegrown Indian designer brands. In 2019, RBL marked its first international foray by acquiring the British toy retailer, Hamleys.

The stock opened a tad higher at Rs 2,655.75 against the previous close of Rs 2,638.45. The market cap of the company rose to Rs 18,41,413.40 crore.

Based in Mumbai, Abu Jani and Sandeep Khosla are India's premier couturiers. An AJSK ensemble is considered a wise investment due to its repeat value, the company added in a statement.

The fashion label Abu Jani Sandeep Khosla currently features three other labels, ASAL by Abu Sandeep, a diffusion, formal, occasion and wedding wear, womenswear label, GULABO by Abu Sandeep, luxe pret separates, featuring casual and formal wear for women and MARD by Abu Sandeep, a formal and occasion wear men’s label.

“Teaming up with India’s foremost couturiers, who hold an unparalleled position in Indian fashion for their fine craftsmanship and impeccable attention to detail, techniques and embroideries is thrilling, as it allows us to build a stronger platform for their zealous commitment to reinvention of Indian craft," said Isha Ambani, Director, Reliance Retail Ventures Ltd. (holding company of all retail companies in Reliance Industries Limited group).

"Inspiration from the old to create with a brand-new approach is their gift. Abu Sandeep have been extraordinarily successful for over three decades and it is time that their endeavour to present their unabashed vision of luxury reached every nook and corner of the world, carving a unique space for the brand globally, making them true Ambassadors of Indian Style”, she added.

Recently, Reliance Retail Ventures Limited (RRVL) announced acquisition of 89 per cent equity stake in Purple Panda Fashions Private Limited, which owns and operates the Clovia business, with an investment of Rs 950 crore through a combination of secondary stake purchase and primary investment.

Meanwhile, Sensex jumped over 500 points in early trade, helped by the recovery in Infosys and HDFC twins along with buying in Reliance Industries.