According to certain media reports, RIL was looking to raise $1 billion by selling nearly 1% stake in RRVL to Qatar Investment Authority at a valuation of about $100 billion.
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Reliance Industries (RIL), the country’s largest private sector firm, would look at paring stakes or listing some of its businesses as it looks to double value by 2027. The firm is expected to sell stake or list firms such as Reliance Retail Ventures (RRVL), Reliance Jio Infocomm and New Energy.
In its AGM last year, RIL Chairman Mukesh Ambani said he expects the company to more than double its value by the end of 2027 and then to grow more rapidly. RIL now has a market capitalisation of over ₹16.82 trillion.
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According to a note by JP Morgan, reports of a sovereign wealth fund looking to invest about $1 billion in Reliance Retail, highlights the multiple stake sale optionality that exists across RIL’s businesses.
“For RIL to double its value over the next four years, this would involve value unlocking from the substantial investments the company has made across segments (Retail, Jio) and would make (New Energy). It would also require selling stakes or listings of some of these businesses. Against this background, we see any potential announcements in this year’s AGM as positives,” JP Morgan said, adding, it sees these as more of a “wish list” from investors.
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According to certain media reports, RIL was looking to raise $1 billion by selling nearly 1% stake in RRVL to Qatar Investment Authority at a valuation of about $100 billion.
Over the years, RIL has sold strategic stakes in its exploration business, stakes in retail and Jio. For its O2C business, while RIL had signed an MoU with Saudi Aramco for a stake sale, the transaction did not progress. RIL has not sold any stake in its newer businesses like New Energy, while the company has now demerged its financial services business into Reliance Strategic Investments (RSIL) and rechristened it JFSL.
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According to brokerage firm Dolat Capital Market, considering the growth momentum in retail, RIL has accelerated a step towards the demerger. The growth in retail growth has been strong and is on track for $1.7 billion net profit by FY25, it said.
There multiple catalysts over CY24-25 include potential listings of consumer businesses, petrochem growth, large 5G capex monetisation and new energy ramp-up), although more immediate catalysts are limited, it added.
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