Mukesh Ambani's Reliance Retail becomes $ 34 billion company

HIGHLIGHTS: Reliance Retail, the country's richest businessman Mukesh Ambani's company, has become a $ 34 billion (about Rs 2.4 lakh crore) company. This value of the company is placed in a proposed share swap scheme for its shareholders.

Reliance Retail, the country's richest businessman Mukesh Ambani's company, has become a $ 34 billion (about Rs 2.4 lakh crore) company. This value of the company is placed in a proposed share swap scheme for its shareholders. Reliance Retail operates the country's largest supermarket stores and consumer electronics outlets chain. This price of Reliance Retail is almost double that of Avenue Supermarts Limited. On the other hand, Tesco is valued at $ 32 billion.

Reliance Retail shareholders will get one share of RIL for every 4 shares

According to the proposal posted on Reliance Retail's website, its shareholders will get one share of Reliance Industries (RIL) for every four shares. Reliance Industries is listed on the BSE and NSE, but its subsidiary Reliance Retail Ventures' subsidiary Reliance is not listed on the stock market. Shares of Reliance Industries closed at Rs 1,515.95, down 1.94 per cent on the BSE on Thursday. RIL's market capitalization (MCAP) at this price is Rs 9,60,991.56 crore.

Employees hold 0.05 percent stake in Reliance Retail

RIL had said in August that it could list Reliance Retail on the stock market in the next five years. Last year, Reliance Retail reported total sales of Rs 1.3 lakh crore. It has 10,901 stores across the country. Reliance Retail Ventures holds 99.95% stake in Reliance Retail. 0.05% of the stake is with the employees.

Why has the proposal of share swap come?

Reliance Retail said that in 2006 and 2007 under the Employee Stock Options Scheme, it had given some shares to its employees. These employees were urging the company to allow them to exit this investment and sell these shares. For this, they were requesting to list the company in the stock market. But there are no plans to list the company in the stock market yet. Hence this share swap scheme has been introduced. A meeting of shareholders of Reliance Retail has been convened on 23 January to approve it.

Source: Web