RIL Deal With Future Group: Today, the shares of Reliance Industries (RIL) are seeing good growth in the stock market. In today’s business, RIL’s stock rose nearly 2.5 per cent to reach Rs 2174. In fact, Reliance Retail Venture Limited (RRVL), a subsidiary of RIL, has announced the acquisition of Future Group’s retail, wholesale, logistics and warehousing business. After that, the stock is getting faster today. On the other hand, shares of Future Group are also up. After this deal, experts are looking more bullish on RIL’s stock. He says that this will increase investor confidence in RIL.
Deals worth Rs 24,713 crore
For this, a deal of Rs 24713 crore has been done in RIL and Future Group. Under this acquisition scheme, Future Group is merging some of its companies with Future Enterprises Limited (FEL). The company said that under this scheme the retail and wholesale business of Future Group will be transferred to Reliance Retail & Fashion Lifestyle Limited (RRFLL), a subsidiary of RRVL.
RIL helps in increasing revenue
Brokerage house Motilal Oswal believes that this deal will help the retail sector in India get into a better-organized shape. All the businesses of Future Group can be transferred to Future Enterprises. After which RIL will be able to acquire Grossi and Apparel retail assets from Future Enterprises further. According to the brokerage, RIL has about 800 departmental grocery stores across the country. This deal will increase it by 34 percent. At the same time, Future Retail also has a considerable reach in the country. Similarly, there are 350 stores of Future Lifestyle Fashion and Reliance Retail stores will increase by 15 percent after the deal. This will help RIL to increase its revue.
144% return in 6 months
Reliance Industries has grown more than 144 per cent in the last 6 months. The stock was trading at Rs 867 on 23 March. At the same time, it closed at Rs 2116 on Friday. Let us know that the stock had gone to its 52-week low during the lockdown period, after which there has been continuous recovery.
Stock may rise further
CLSA has given an outperform rating on Reliance and has fixed the target at Rs 2250. According to the report, RIL’s business in retail will be stronger. With this, RIL’s market share in retail will increase by 4.1 percent.
Brokerage house Motilal Oswal also believes that apart from increasing market share in the retail sector, RIL will help increase its revenue from this deal. The brokerage has also set a target of Rs 2250 for the stock.
Morgan Stanley has given an overweight rating for the stock and has fixed the target from Rs 1801 to Rs 2247. Centrum has given a buy rating on RIL and has set a target of Rs 2280. According to Centrum, Reliance Retail’s contribution to private level will increase with the deal.
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