- There is no reduction in the gray market premium of Reliance Retail
- The company’s market cap surpassed that of its parent company RIL.
- Reliance Industries holds 99.95 percent stake in Reliance Retail
- Share price in the unofficial market is Rs 2,650-2,700
Reliance Retail suffered a setback in the Future Retail deal on Friday, but despite this, there has been no reduction in the premium of the company’s unlisted shares in the gray market. The company’s market cap has reached beyond that of its parent company Reliance Industries. Reliance Industries holds 99.95 per cent stake in Reliance Retail. Reliance Industries, led by Asia’s biggest rich Mukesh Ambani, is the country’s most valuable company.
In the unofficial market, the share of Reliance Retail is running at Rs 2,650-2,700 per share. At this price, the company’s valuation will be around Rs 18-19 lakh crore on a diluted basis, while the market cap of Reliance Industries is Rs 13.3 lakh crore. Dealers say the premium for Reliance Retail is high due to the high demand for unlisted shares. Everyone wants to have it in their portfolio but no one wants to sell it. The reason for this is that Reliance’s name is associated with it.
Why is the premium increasing?
Sandeep Ginodia, CEO, Altius Investech, said investors want to retain their stake in the country’s largest and fastest growing retail chain at all costs. He said that despite being a retail company, it is getting extra premium for being an e-commerce player. It has additional demand due to strong profits and revenue.
The Supreme Court on Friday stayed the Future-Reliance deal. He had justified the stand of America’s leading e-commerce company Amazon in this matter. Reliance Retail inked a deal last year to buy Future Group’s retail and wholesale business for $3.4 billion. Amazon challenged this and the Emergency Court of Singapore ruled in its favor and stayed the Reliance-Future deal. Now the Supreme Court has also upheld this ban.
when will the listing happen
In the last few months, Reliance Retail has acquired several companies. Recently, it acquired the country’s search engine company Just Dial for $ 466 million. The company also has stakes in or partnered with Netmeds, Urban Ladder, Hamleys and Fynd. This has also increased the interest of investors in the unlisted shares of the company. It is also in the process of tying up with QSR chain Subway and recently partnered with Swiggy.
Mukesh Ambani had recently indicated to list Reliance Retail. Sambhav Agarwal of Delhi-based firm Arms Securities said the Supreme Court’s decision has not had any negative impact on Reliance Retail prices as no one wants to sell Reliance Retail shares. He said, “Reliance Retail will be a one stop shop for all your needs. The company wants to make an app for everything.