Shares of Reliance Industries Ltd (RIL) were trading lower on Monday amid the overall weak market as war between Russia and Ukraine continued and COVID situation in China appeared worsening.
The fall also comes after the oil-to-telecom conglomerate announced that its subsidiary Reliance Retail Ventures Ltd (RRVL) has acquired 89 percent equity stake in Purple Panda Fashions, which owns and operates the Clovia business, with an investment of Rs 950 crore through a combination of secondary stake purchase and primary investment.
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The founding team and management will own the balance stake in the company, the press release said.
RIL’s stock has fallen after two days of consecutive gain. At 9:47 am, the stock was down 0.7 percent at Rs 2,462.7 on BSE.
Clovia is India’s leading bridge-to-premium D2C brand democratising aspirational innerwear and loungewear for millennial women. It commands a strong customer following in the intimate wear space and is known for its design-led fresh styles and sharply-priced offerings to customers, RIL said in the release.
With this acquisition, RRVL will further strengthen its portfolio in the innerwear segment, having already acquired Zivame and Amante brands.
RRVL, a subsidiary of RIL, is a holding company of all the retail companies under the RIL Group. RRVL reported a consolidated turnover of Rs 157,629 crore and net profit of Rs 5,481 crore for the year ended March 31, 2021.
