After slipping earlier last week, the stock of Reliance Industries (RIL) gained about 2 per cent on Friday. A couple of factors seems to have helped the stock rebound.
One, RIL’s plan to offer one share in the company for four shares in its unlisted subsidiary Reliance Retail values the retail business at about ₹2.5-lakh crore — double that of peer Avenue Supermarts that had a blockbuster IPO in 2017.
The share swap offer, open to employee shareholders of Reliance Retail, seems to be laying the floor valuation for the eventual listing of Reliance Retail. While the valuation of Reliance Retail implied by the proposed share swap is lower than what some brokerages had estimated, the market appears pleased with the ball being set into motion for the value unlocking in the coming years. Next, the National Company Law Tribunal rejected a petition of the I-Tax Department against Reliance Jio hiving off its fibre and tower business. This removes a roadblock from RIL’s debt reduction plans.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.