The program advanced more than 2 percent to a new lifetime high of Rs 2,211, while the benchmark BSE Sensex traded 0.68 percent higher at 38,438.
“A person familiar with the development said that new shares will be issued to investors and that the company expects to complete the fundraiser by the end of October,” ET reported.
The report further added that Amazon and Walmart have been mentioned as potential suitors, but no discussions have been held with them.
While Silver Lake Private Equity Fund is the first to join, other investors from Jio Platforms – Saudi Arabia Public Investment Fund (PIF), Abu Dhabi-based Mubadala Investment Company, Abu Dhabi Investment Authority (ADIA), L Catterton and KKR- They are also likely to increase the stakes on the retail company.
Stockbrokers raised RIL’s price target after the Silver Lake deal. RIL and RRVL announced Wednesday that the US PE company will invest Rs 7.5 billion in RRVL, a subsidiary of Reliance Industries.
This investment values RRVL at a pre-money capital value of Rs 4.21 lakh crore. Silver Lake’s investment will result in a 1.75 percent equity interest in RRVL on a fully diluted basis.
Motilal Oswal raised the target price to Rs 2,250. “We have assigned a capital value of Rs 3.68 lakh crore to RRVL. Therefore, this agreement values the company at a premium of 14 percent over our valuation. With this valuation, the implied price of Reliance Retail shares would be Rs 664 compared to our target price of Rs 580 and would increase our current Reliance Industries target price by 4 percent. ”
IDBI Capital Markets revised the RIL target price up to Rs 2,464 from Rs 2,154 earlier.
“We expect a few more deals in the coming weeks, as we have already seen for Jio Platform. However, the valuation is likely to remain unchanged for the next deals in line with the sale of the Jio Platform stake, ”he said.
.
