The listing plans for its retail arm may yet just be on the Reliance IndustriesNSE 0.38 % drawing board, but investors are already valuing the business way above those of its listed peers. Valuations of Reliance Retail, India’s biggest retailer by revenue, crossed Rs 2.5 lakh crore last week in the unofficial market, or 75 per cent more than the market capitalisation of seven listed rivals put together.
Reliance Retail shares, which started trading in the past two weeks in the unlisted ..
Reliance Retail valuations dwarf those of Avenue Supermarts, owner of DMart, Future Retail, Trent and Spencer’s put together. Reliance Industries’ market capitalisation is Rs 8.04 lakh crore.
Limited supply of Reliance Retail shares has driven up prices by 30-40 per cent in the grey market, brokers said.
“There is good demand for Reliance Retail shares in the unlisted market and the latest transactions were executed between Rs 475 and Rs 500, though the asking rate was Rs 700-800,” said Sandip Ginodia, CEO, Abhishek Securities.
Brokers said the likelihood of Reliance listing the retail business to cut debt is fueling the demand
"There are expectations that Reliance could demerge and list Reliance Retail soon because of the mounting debt at the group level," said Dharan Shah, managing partner, Jamnadas Virji Advisory, a Mumbai-based broking firm that caters to rich individuals. Reliance Industries’ net debt was Rs 2.72 lakh crore as on March 31, 2019.
Analysts said the oil-to-telecom conglomerate has been looking at various options to reduce debt, but has not decided on the specifics.
Reliance Retail b ..
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