KRChoksey: Reliance Industries - Leveraging The Consumption Space Through Inorganic Route

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..KRChoksey Report.On August 29, 2020, Reliance Industries Ltd. announced the acquisition of Future Group for Rs 24,713 crore on a slump sale basis through its subsidiary Reliance Retail Ventures Ltd. (RRVL)Through the deal, Reliance will acquire Future Retail Ltd. (FRL) that owns the BigBazaar that sells everything from groceries to cosmetics and apparel, and Future Lifestyle Fashions Ltd. (FLFL) that operates fashion discount chain Brand Factory.The Logistics and Warehousing undertaking will also be transferred to Reliance Retail. Future Group will be merging these companies into Future Enterprises Ltd. (FEL) In order to consummate the deal.Reliance Retail will also invest Rs 1,200 crore in the preferential issue of equity shares of Future Enterprises to acquire 6.09% of post-merger equity and Rs 400 crore in a preferential issue of equity warrants which, upon conversion and payment of balance 75% of the issue price, will result in Reliance Retail acquiring further 7.05% of Future Enterprises aggregating to approximately 14% stake.This acquisition is subject to The Securities and Exchange Board of India, Competition Commission of India, National Company Law Tribunal, shareholders, creditors and other requisite approvals.We view the merger as a positive event for Reliance Industries as it will help consolidate its space in the organized retail market.Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint. .Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

KRChoksey: Reliance Industries - Leveraging The Consumption Space Through Inorganic Route

KRChoksey: Reliance Industries - Leveraging The Consumption Space Through Inorganic Route

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