Reliance Retail set to cancel all public shares

economictimes.indiatimes.com:

Reliance Retail Friday said its board approved a proposal to cancel the equity shares held by public shareholders. The company will pay ₹1,362 per share for the cancelled unlisted stock, valuing Asia's richest man Mukesh Ambani's retail business at $149 billion (₹12.31 lakh crore). At that price point per share, this is as much as 70% of parent Reliance Industries' (RIL's) $218-billion (₹18.01-lakh crore) market capitalisation.

Global investment firm Bernstein in a May report valued the holding company of Reliance Retail, called Reliance Retail Ventures (RRVL), at $131 billion (₹10.82 lakh crore). RIL owns 85% of RRVL, which in turn owns more than 99% of Reliance Retail. The market capitalisation of Tata Consultancy Services, India's largest services exporter and most valued company of Tata Group, is $148 billion (₹12.23 lakh crore).

Private sector lender HDFC Bank, which has merged with HDFC, is expected to have an Mcap in excess of $170 billion (₹14.04 lakh crore) when shares of the mortgage lender are extinguished next week. The fair value of Reliance Retail, as determined by two independent valuers Ernst & Young Merchant Banking Services and BDO Valuation Advisory, is ₹884.03 and ₹849.08 a share, respectively. This would mean the firm is worth $93-$97 billion (₹7.68-8.01 lakh crore).