Reliance share price weak, but experts stay optimistic after Reliance Retail-QIA deal; all eyes on 46th AGM on Monday
Reliance Industries (RIL) share price dipped about half a per cent in morning trade on BSE on Thursday, a day after the company announced Qatar Investment Authority (QIA), through a wholly-owned subsidiary, will invest ₹8,278 crore into Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries Limited. This investment, the company said values RRVL at a pre-money equity value of ₹8.278 lakh crore. QIA’s investment will translate into a 0.99 per cent stake in RRVL on a fully diluted basis, RRVL said on Wednesday.
Read more: QIA to invest ₹8,278 crore in RIL’s retail arm for 0.99% Shares of the company opened at ₹2,542 against the previous close of ₹2,523.15 but slipped about 0.52 per cent to ₹2,510 in an otherwise positive market. The stock hit its 52-week high of ₹2,635.17 on July 19, 2023, on BSE and its 52-week low of ₹2,012.14 on March 20, 2023. As of the August 23 close, the stock is down over 4 per cent from its 52-week high level.
Experts are optimistic about RIL stock in the wake of QIA's investment in RRVL. Shrey Jain, Founder and CEO of SAS Online believes in addition to the invested capital, the global experience and demonstrated history of value addition by QIA are poised to significantly aid Reliance Retail's global expansion prospects. Moreover, this collaboration holds the potential to catalyze the transformation of the Indian retail sector.
Jain said with the Reliance AGM just around the corner, set for the upcoming Monday, QIA's investment emerges as a motivating step for the company. "It will undoubtedly be perceived as a gesture of bolstering confidence among the company's investors, acting as a testament to the company's growth trajectory. This also serves as a strong endorsement of a
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