InvestorQ : How do you see Reliance Retail business versus D-Mart after the spate of stake sale that RIL had managed to do?
Riya Dwivedi made post

How do you see Reliance Retail business versus D-Mart after the spate of stake sale that RIL had managed to do?

Answer
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shrinidhi Rajan answered.
3 weeks ago


Reliance Industries continues to monetize its retail franchise by selling part of the stake in the retail venture to PE investors. The latest join the league of investors is the Abu Dhabi Investment Authority or ADIA which is taking 1.2% stake in RRVL for Rs.5513 crore.

Before ADIA a number of other PE funds that also participated in Jio Platforms like ADIA have already taken a stake in RRVL. They include marquee names like Silver Lakes, KKR, General Atlantic, Mubadala Investment, GIC and TPG selling 8.48% for Rs.37,712 crore.

Reliance has taken a major inorganic step by buying into the retail and whole sale business of the Future Group for Rs.24,713 crore. The will give the Reliance Retail group the access to brands like Big Bazaar, Food Bazaar, Easyday, Nilgiris, Central and Brand Factory.

UBS has brought out a study which shows that Reliance Retail would most likely emerge as the leader in retail and steal a march over Avenue Supermarts, which owns the popular D-Mart brand in India. The lockdown and social distancing may benefit RIL a lot more.

UBS has gone ahead and lower PAT estimates for D-Mart by 37% for FY21 and by 13% for FY22. UBS had raised revenue estimates for RRVL considering higher visibility of its e-commerce business ramp-up. RRVL is also heavily betting on online sales.