Motilal Oswal: Reliance Acquires Future Group’s Retail Formats; Grows Its Strength In Indian Retail Sector
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.
Motilal Oswal Report
In a deal that could well shape the Organized Retail sector in India, Reliance Industries Ltd., through its retail subsidiary, Reliance Retail Venture Ltd. (RRVL), announced the acquisition of Future Group Ltd.’s Grocery and Apparel Retail formats on slump-sale basis at Rs 247 billion.
The deal’s equity value stood at 56 billion, implying the absorption of Rs 191 billion liabilities.
As per our understanding, the deal is likely to be structured in three steps -
1. All of Future Group’s businesses would be transferred to Future Enterprises Ltd. (FEL).
2. Reliance Industries would then acquire the Grocery and Apparel Retail assets from FEL for Rs 247 billion.
3. FEL would retain the FMCG and Apparel brands, the Future Generali Insurance joint venture, and select real estate assets in which Reliance Industries would take an additional 13% stake in two parts for Rs 28 billion.
Click on the attachment to read the full report:
This 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.