Reliance Retail To Invest $200 Million – Latest news headlines


Reliance Retail has acquired 25.8 per cent stake in online delivery platform Dunzo

Reliance Industries Limited’s (RIL) retail arm has invested $200 million in online delivery platform Dunzo as it looks to get a foothold in the country’s rapidly growing market of quick delivery.

Reliance Retail has acquired a 25.8 per cent stake in Dunzo for $200 million (around Rs 1,488 crore).

Dunzo raised $240 million in its latest funding round that was led by Reliance Retail Ventures Limited.

Existing investors Lightbox, Ligthrock, 3L Capital and Alteria Capital had also participated in the funding round.

“This round is a reinstatement of confidence of existing and new investors in Dunzo’s potential and success in creating an exceptional user experience. The capital will be used to further Dunzo’s vision to be the largest quick commerce business in the country, enabling instant delivery of essentials from a network of micro warehouses while also expanding its B2B business vertical to enable logistics for local merchants in Indian cities,” the two entities said in a statement.



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Latest News Today – Reliance Retail Acquires Stake Of 40.9% In Just Dial For


Reliance Retail is likely to acquire a majority stake of 66 per cent in Just Dial

Reliance Retail, the retail arm of billionaire Mukesh Ambani-led Reliance Industries Limited, acquired a stake of 40.95 per cent for Rs 3,497 crore in leading internet technology B2B company Just Dial. As per the definitive agreements on July 16, the retail company will make an open offer to acquire up to 26 per cent in accordance with takeover regulations set by market regulator SEBI.

This means that Reliance Retail may acquire a majority stake of 66.95 per cent in Just Dial. With the acquisition, Just Dial Founder VSS Mani will continue to lead the company as its managing director and chief executive officer (CEO).

Out of the total 40.95 per cent acquired by the Reliance Industries’ subsidiary, it has received a preferential allotment of 2.12 crore equity shares, which is equivalent to 25.33 percent post preferential share capital at a price per share of Rs 1,022.25.

Reliance Retail has acquired 1.31 crore equity shares from VSS Mani, which is equivalent to 15.62 percent post preferential share capital at a price per share of Rs 1,020.00.

The capital infused by Reliance Retail will help drive the growth and expansion of the country’s leading local search engine platform into a comprehensive local listing and commerce platform. 

The investments will leverage Just Dial’s existing database of around 30.4 million listings and its existing consumer traffic of nearly 129.1 million quarterly unique users

”The investment in Just Dial underlines our commitment to New Commerce by further boosting the digital ecosystem for millions of our partner merchants, micro, small and medium enterprises,” said Ms Isha Ambani, Director of Reliance Retail Ventures Limited (RRVL). 

The transaction is subject to shareholder as well as other customary closing conditions and approvals. Just Dial recently launched its B2B marketplace platform – JD Mart which is aimed at equipping wholesalers, manufacturers, retailers, and distributors in the country with internet technology for a post-COVID-era.

Last year, Reliance Retail executed the country’s largest fundraising in the retail sector – raising Rs 47,265 crore from global investors. The country’s leading retailer reported a net profit of Rs 5,481 crore for the financial year 2020-21.



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Latest News Today – Amazon-Future-Reliance Case Adjourned by Supreme Court


The Supreme Court on Thursday adjourned for July 20 the Amazon-Future-Reliance case in view of the final hearing before the Singapore Arbitration Tribunal next week.

A Bench headed by Justice Rohinton F Nariman adjourned the matter after senior advocate Harish Salve appearing for Future Retail submitted that the Singapore Arbitration Tribunal is hearing the application from Tuesday and requested for the matter to be heard next week.

Earlier, the Bench had stayed further proceedings before the Single Judge and Division Bench of Delhi High Court in the Amazon-Future-Reliance case.

The top court was hearing an appeal of e-commerce giant Amazon challenging the Delhi High Court’s decision to stay an order upholding an emergency arbitrator award restraining Future Retail Limited (FRL) from going ahead with its Rs. 24,731-crore assets sale deal with Reliance Retail.

On March 22, a Division Bench of High Court Chief Justice DN Patel and Justice Jasmeet Singh had stayed a March 18 order of Justice JR Midha ordering attachment of the assets of Future Coupons Private Limited (FCPL), FRL, Kishore Biyani, and 10 others promoters.

Amazon has been seeking enforcement of an order of the emergency arbitrator (EA) at the Singapore International Arbitration Centre (SIAC) restraining FRL from taking any steps to transfer its retail assets.

Amazon has 49 percent stake in FCPL, which in turn owns 9.82 percent stake in FRL. Amazon’s contention is that it has invested Rs.1,431 crores in FCPL on the clear understanding that FRL would be the sole vehicle for its retail business and its retail assets would not be alienated without consent and never to a ”Restricted Person”.

FRL, on the other hand, has objected to the enforcement of the EA award saying that it is not an order under Section 17(1) of the Arbitration and Conciliation Act and hence not enforceable in India.

FRL has contended that the Rs 24,731-crore deal was very important to save its 25,000 employees. It had said that as per the deal, Reliance will not only take over FRL”s shops but also all its liabilities.




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Future-Reliance Deal: Delhi High Court Stays Direction | Sidnaz Blog


The Delhi High Court on Monday stayed its single judge direction to Future Retail (FRL) and various statutory authorities to maintain status quo with regard to the Rs. 24,713 crore deal with Reliance Retail.

A bench of Chief Justice D N Patel and Justice Jyoti Singh passed in the interim direction on FRL’s appeal challenging the February 2 order of the single judge.

The bench also declined Amazon’s request to keep its order in abeyance for a week so that it can explore appropriate remedies.

The court while staying the February 2 order said that statutory authorities, like National Company Law Tribunal, CCI, and SEBI, cannot be restrained from proceeding in accordance with law with regard to the deal.

The court also issued notice to Amazon and sought its stand on FRL’s appeal by February 26 when it will commence day-to-day hearing of the matter.

The February 2 order had come on Amazon’s suit seeking enforcement of the Emergency Arbitrator (EA) order restraining FRL from going ahead with its Rs. 24,713 crore deal with Reliance Retail.

The October 25, 2020 EA order by the Singapore International Arbitration Centre (SIAC) had restrained FRL from going ahead with the deal with Mukesh Ambani’s Reliance Retail. 


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Reliance-Future’s $3.4-Billion | Sidnaz Blog

Antitrust body Competition Commission of India (CCI) on Friday cleared conglomerate Reliance Industries’ $3.4 billion (or Rs. 24,713 crores) deal to buy Future Group’s retail assets, thwarting Amazon.com’s efforts to block the deal.

The Competition Commission of India (CCI) announced its decision in a tweet on Friday, with details likely to be made public later.

Amazon had approached the CCI and market regulator SEBI alleging the deal would violate some pre-existing agreements it had with Future Group.

Last month, Amazon won an injunction from a Singapore arbitrator to halt the deal pending arbitration.

Amazon, Future, and Reliance did not immediately respond to a request for comment.

While the deal is yet to receive approval of stock exchanges and market regulator SEBI, the three companies are now embroiled in a legal battle at the Delhi High Court over the transaction.

An antitrust lawyer said the CCI only looks into competition issues around a deal and is not concerned with other disputes between parties.

“It’s (CCI) not a regulator which approves the transaction as such,” the lawyer said.

Amazon says its 2019 deal with a Future Group subsidiary included clauses saying it could not sell its retail assets to certain parties, including Reliance.

Future has argued it entered into the deal with Reliance because its retail business was severely hit during the COVID-19 pandemic and it was critical to protect all its stakeholders.

The dispute has put Amazon at odds not just with Future Retail – one of country’s top retailers – but also with Ambani’s Reliance Group which is fast expanding its e-commerce business and threatening the dominance of the US giant.

© Thomson Reuters 2020


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