Reliance Industries Ltd (RIL) shares jumped over 4 percent in Tuesday's opening trade after the conglomerate's retail arm bought a majority stake in Urban Ladder Home Decor Solutions.
Reliance Industries Ltd (RIL) shares jumped over 4 percent in Tuesday's opening trade after the conglomerate's retail arm bought a majority stake in Urban Ladder Home Decor Solutions. However, the stock price soon eased from opening highs and traded nearly flat as the broader market got off-highs.
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RIL shares opened with a gain of 4.1 percent at Rs 2,084.00 apiece on the BSE. The stock was trading 0.09 percent lower at Rs 2,000.00 as against a 0.20 percent gain in the benchmark Sensex.
Reliance Retail Ventures Ltd (RRVL), a subsidiary of Reliance Industries Ltd (RIL) has acquired equity shares of Urban Ladder Home Decor Solutions Private Ltd (UrbanLadder) for a cash consideration of Rs 182.12 crore. The investment represents 96 percent holding in the equity share capital of UrbanLadder.
RRVL has a further option of acquiring the balance stake, taking its shareholding to 100 percent of the equity share capital of UrbanLadder, the company said.
RRVL proposes to make a further investment of up to Rs 75 crore which is expected to be completed by December 2023.
The aforesaid investment will further enable the group's digital and new commerce initiatives and widen the bouquet of consumer products provided by the group while enhancing user engagement and experience across its retail offerings.
Global brokerage Morgan Stanley maintained an Overweight rating on Reliance Industries with a target at Rs 2,247 per share. The Urban Ladder marks the company's first acquisition in the digital home, it said.
Decor, an area that it has highlighted would be in focus, the brokerage house added.
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(Edited by : Ajay Vaishnav)