Ambani's Reliance Retail valued at USD 34 bn in new share-swap scheme

Richest Indian Mukesh Ambani's Reliance Retail, which runs the country's largest chain of neighbourhood supermarket stores and consumer electronics outlets, has been valued at USD 34 billion (Rs 2.4 lakh crore) in a proposed share-swap scheme for shareholders.

Reliance Retail's shareholders have will get one share of its listed parent, Reliance Industries, in exchange for every four shares, according to the scheme of arrangement posted on Reliance Retail's website.

The share-swap values Reliance Retail at about Rs 2.4 lakh crore.

Reliance Retail is an unlisted subsidiary of Reliance Retail Ventures and an indirect subsidiary of oil-to-telecom conglomerate Reliance Industries Ltd (RIL).

RIL's shares ended at Rs 1,515.95 apiece on the BSE, giving the company a market cap of Rs 9.6 lakh crore.

In August, RIL had said that it may list Reliance Retail on the stock exchanges in the next five years. Reliance Retail clocked net sales of Rs 1.3 lakh crore last year and has built a network of 10,901 stores.

In the scheme of arrangement, Reliance Retail said it had given employees stock options in 2006 and 2007. "On exercise of the RSUs (restricted stock units) by some of the employees, equity shares have been allotted to them."
In the proposed scheme, "equity shareholders of the company other than the holding company viz, Reliance Retail Ventures Ltd are being given listed equity shares of Reliance Industries Ltd (the ultimate holding company of the firm) and the corresponding equity share capital held by them in the company is being reduced and cancelled."