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 – Sensex, Nifty Snap Two-Day Winning Streak; Reliance

The Indian equity benchmarks snapped their two-day winning run on Monday dragged down by losses in index heavyweight Reliance Industries after it reported 7 per cent decline in net profit in quarter ended June 1. The billionaire Mukesh Ambani-promoted company was the top drag on the Sensex followed by HDFC, HDFC Bank, State Bank of India and Larsen & Toubro, data from BSE showed. However, the downside was capped for markets as Infosys, Kotak Mahindra Bank and UltraTech Cement provided support.

The Sensex ended 124 points or 0.23 per cent lower at 52,852 and Nifty 50 index slipped 32 points or 0.2 per cent to close at 15,824.

“Nifty made an attempt to hold above an important support level of 15,800. While sustaining above 15,800 is the key factor from a short-term perspective, we expect the Nifty to extend the rally till 15,920-15,950, Gaurav Garg, Head of Research, CapitalVia Global Research told NDTV.

Seven of 11 sector gauges compiled by the National Stock Exchange ended lower led by the Nifty Realty index’s nearly 1 per cent fall.

Nifty Bank, Auto, Financial Services, FMCG and PSU Bank indices also closed with a negative bias.

On the other hand, metal, pharm and information technology shares witnessed buying interest.

Mid- and small-cap shares ended on a mixed note as Nifty Midcap 100 closed marginally lower while Nifty Smallcap 100 index advanced 0.3 per cent.

Shares of the country’s most valuable company, Reliance Industries, fell nearly 1 per cent to hit an intraday low of Rs 2,084.75 on the BSE after its net profit in June quarter declined 7 per cent, annually, to Rs 12,273 crore on the back of increase in total expenses.

ICICI Bank shares gained more than 1 per cent on the BSE in a subdued market after the bank reported a jump in net profit in the first quarter ended June 2021.

JSW Steel was top Nifty loser, the stock fell nearly 2 per cent to close at Rs 704.60. Wipro, State Bank of India, Bharat Petroleum, Indian Oil, Tech Mahindra, Mahindra & Mahindra, Bharti Airtel and Tata Motors were also among the losers.

On the flipside, SBI Life, Bajaj Finserv, Hindalco, Divi’s Labs, UltraTech Cement, Tata Steel, Titan, Britannia and Sun Pharma were among the gainers.

The overall market breadth was positive as 1,837 closed higher while 1,515 ended lower on the BSE.

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Latest News Today – Reliance Industries Profit Declines 7% To Rs 12,273

Jio’s average revenue per user improved to Rs 138.4 per user per month.

The country’s most valued company – Reliance Industries – on Friday reported net profit of Rs 12,273 crore in quarter ended June 30, 2021, marking a decline of 7.25 per cent from the same quarter last year on the back of increase in total expenses. Reliance Industries total expenses in the quarter jumped 50 per cent annually to Rs 1.31 lakh crore. The oil-to-telecom conglomerate’s revenue from operations advanced 58 per cent to Rs 1.44 lakh crore compared with Rs 91,238 crore in the year ago period.

Reliance Industries earnings before interest, tax, depreciation and amortization (EBITDA) also known as the operating profit came in at Rs 27,550 crore up 27.6 per cent.

Reliance Industries revenue in retail segment was impacted by the second wave of Covid-19 pandemic, Reliance Industries said in a stock exchange filing.

“The outbreak of corona virus (COVID-19) pandemic globally and in India is causing significant disturbance and slowdown of economic activity. The Group’s operations and revenue were impacted due to COVID-19. During the current quarter, there is no significant impact other than in Retail segment,” Reliance Industries said.

Reliance Retail’s net profit more than doubled to Rs 962 crore while its EBITDA came in at Rs 1,941 crore, up 80 per cent. During the quarter, Reliance Retail opened 123 new stores taking the total number of operational stores to 12,803 stores, Reliance Industries said.

The company’s telecom arm – Reliance Jio reported strong performance in the April-June period as its net profit jumped 45 per cent annually to Rs 3,651 crore on the back nearly 10 per cent increase in revenue which came in at Rs 18,952 crore. Jio’s average revenue per user (ARPU), a key metric to evaluate the performance of a telecom company, improved to Rs 138.4 per user per month from Rs 138.2 in the previous quarter.

Reliance Jio’s total customer base as on end of the first quarter of current financial stood at 440.6 million, up 42.3 million customers annually, Reliance Industries said.

“I am happy that our Company has delivered robust growth despite facing a highly challenging operating environment caused by the second wave of the COVID pandemic. The results of the First Quarter of FY2022 clearly demonstrate the resilience of Reliance’s diversified portfolio of businesses that cater to large parts of the consumption basket,” Mukesh Ambani, Chairman and Managing Director, Reliance Industries Limited said in a statement.

“COVID-related restrictions on store operations during the quarter impacted our Retail business operations and profitability. This is a temporary phenomenon. We remained focused on ensuring supplies of necessities, including food, grocery, health & hygiene products through a combination of online-offline channels. We stepped up our efforts in creating partnerships with small merchants and digital engagement with consumers. This is creating a newer and inclusive model of growth. I am confident that the retail business is poised to create exponential value and growth,” Mr Ambani added.

Reliance Industries shares ended 0.74 per cent lower at Rs 2,105 ahead of earnings announcement.

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Latest News Today – Reliance Jio Profit Rises 44.9% To Rs 3,651 Crore In

Reliance Jio Q1 Earnings: Net profit rose 44.9 per cent to Rs 3,651 crore

Mukesh Ambani-owned Reliance Industries’ telecom arm – Reliance Jio reported a jump of 44.9 per cent in net profit at Rs 3,651 crore on a consolidated basis in the first quarter of the current fiscal, compared to Rs 2,519 crore in the corresponding period last year. (Also Read: Reliance Industries Profit Declines 7% To ₹ 12,273 Crore In June Quarter )

Jio platform’s revenue from operations stood at Rs 18,952 crore in the April-June quarter of fiscal 2021-22, marking a growth of 9.8 per cent, compared to Rs 17,254 crore in the year-ago period, according to a regulatory filing by the company to the BSE on Friday, July 23.

Reliance Jio reported a total customer base of 440.6 million by the end of June 2021, and a net addition of 42.3 million customers, driven by traction across mobility and homes.

The company’s EBITDA (earnings before interest, tax, depreciation, and amortization) for the June quarter stood at Rs 8,892 crore, marking a growth of 21.3 per cent year-on-year, compared to Rs 7,332 crore in the same quarter last year. The EBITDA margin expanded to 46.9 per cent, compared to 42.5 per cent in the corresponding quarter last year, reflecting operational efficiency.

The average revenue per unit or ARPU during the quarter was Rs 138.4 per subscriber per month, compared to Rs 138.2 per subscriber per month in the preceding January-March quarter of fiscal 2020-21. The telecommunication company’s value of services for the June quarter stood at Rs 22,267 crore, 9.8 per cent higher year-on-year, compared to Rs 20,277 crore in the same period of the previous financial year.

During the 44th annual general meeting (AGM) of Reliance Industries announced an affordable, customer-friendly smartphone – JioPhone Next, in collaboration with Google. 

The smartphone is powered by an optimised version of the Android operating system (OS), that has been jointly developed by Google and Jio for the market in India.

JioFiber has more than three million connected homes with improving momentum in recent months, according to the company’s statement.

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Latest News Today – Amazon Accused of Concealing Facts in Deal for Future

India’s antitrust regulator has accused Amazon of concealing facts and making false submissions when it sought approval for a 2019 investment in a Future Group unit, a letter to the US e-commerce giant seen by Reuters showed.

The letter complicates Amazon’s bitter legal battle with Future Group over the Indian’s firm’s decision to sell its retail assets to Reliance Industries – a matter that is now before India’s Supreme Court.

Amazon has argued that terms agreed upon in its 2019 deal to pay $192 million (roughly Rs. 1,430 crores) for a 49 percent stake in Future’s gift voucher unit prevent its parent, Future Group, from selling its Future Retail business to Reliance.

In the letter dated June 4, the Competition Commission of India (CCI) said Amazon hid factual aspects of the transaction by not revealing its strategic interest in Future Retail when it sought approval for the 2019 deal.

“The representations and conduct of Amazon before the Commission amounts to misrepresentation, making false statement and suppression or/and concealment of material facts,” the letter said. It also noted that its review of the submissions made had been prompted by a complaint from Future Group.

In the four-page letter, a so-called ‘show cause notice’, the CCI asked Amazon why it should not take action and penalise the company for providing false information.

Amazon has yet to respond, according to a source with direct knowledge of the matter who declined to be identified as the letter has not been made public.

Amazon said in a statement to Reuters it had received a letter, was committed to complying with India’s laws and would extend its full cooperation to the CCI.

“We are confident that we will be able to address the CCI’s concerns,” it said.

Representatives for Future and the CCI did not respond to Reuters requests for comment.

Vaibhav Choukse, a competition law specialist and partner at J. Sagar Associates, said it was rare for the CCI to issue such a notice and that if the CCI was not satisfied by Amazon’s response, it could lead to a fine and even a review of the deal.

“The CCI has wide powers which includes directions to re-file the approval application and even revoke the approval under exceptional circumstances,” Choukse said.

The CCI’s 2019 approval order states its decision “shall stand revoked if, at any time, the information provided” is found to be incorrect.

Shares in Future Retail jumped after Reuters published details of the letter, extending gains to be up nearly 5 percent in Thursday afternoon trade.

Submissions compared

The dispute over Future Retail, which has more than 1,500 supermarket and other outlets, is the most hostile flashpoint between Jeff Bezos’ Amazon and Reliance, run by India’s richest man Mukesh Ambani, as they try to gain the upper hand in winning over the country’s consumers.

Amazon also has a host of other challenges in India, a key growth market where it has committed $6.5 billion (roughly Rs. 48,410 crores) in investments, including a separate CCI probe into alleged practices that small businesses say have hurt them.

In addition, it faces the prospect of more regulations that would restrict the sale of private labels and would prohibit the US firm from allowing its affiliates to list products on its website.

The CCI letter compared three sets of submissions Amazon made to it in 2019 with submissions made later to other legal forums, saying they were “contradictory.”

In particular, it said Amazon had explained its interest in investing in Future’s coupon unit as one that would address gaps in India’s payments industry. But the letter stated Amazon had disclosed in other legal forums that the foundation of its relationship with Future Coupon was certain special rights it obtained over Future Retail.

“Amazon has concealed its strategic interest” in Future Retail, the letter said, adding: “Such interest and the purpose of the combination … was not disclosed to the Commission despite specific requirements.”

The CCI also objected to one section of a submission where Amazon had told the regulator it had nothing to do with one particular legal agreement that two Future entities had signed between themselves days ahead of its 2019 deal. But Amazon later claimed before an arbitrator that the agreement was an “integrated part” of the transaction, the letter said.

© Thomson Reuters 2021

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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 – Reliance Industries Invests In New Energy Business;

RNESL, which isyet to commencebusiness operations,will undertake activities pertaining to solar energy

Reliance Industries has invested Rs 1,00,000 cash in Reliance New Energy Solar Limited’ (RNESL), a newly incorporated wholly owned subsidiary, as part of its foray into new energy. “The Company (Reliance Industries) has invested Rs 1,00,000 in cash in 10,000 equity shares of Rs 10 each of “Reliance New Energy Solar Limited” (RNESL), a newly incorporated wholly owned subsidiary,” Reliance Industries said in a regulatory filing to the stock exchanges. RNESL, which is yet to commence business operations, will undertake activities pertaining to solar energy.

Reliance Industries said the the investment in RNESL does not fall within related party transactions and the promoter/promoter group companies do not have any interest in RNESL.

At the Reliance Industries’ AGM held on June 24, chairman Mukesh Ambani had announced plans to set up Dhirubhai Ambani Green Energy Giga Complex at Jamnagar in Gujarat.

At 3:05 pm, Reliance Industries shares were trading higher by 0.6 per cent at Rs 2097 in a strong market.

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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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Latest News Today – Sensex, Nifty Decline Led By Losses In Reliance

The Indian equity benchmarks extended losses ahead of weekly expiry of index futures and option contracts due later in the day. The Sensex fell as much as 575 points and Nifty 50 index dropped below its important psychological level of 15,700. Reliance Industries, ICICI Bank, HDFC Bank, Hindustan Unilever and Infosys were among the top drags on the Sensex.

As of 2:34 pm, the Sensex was down 569 points at 52,485 and Nifty 50 index declined 176 points to 15,702.

“With earnings season kicking in, markets might get a sense of direction since most positive triggers had already been factored in,” said Gaurav Garg, head of research at CapitalVia Global Research in Indore told Reuters.

“IT companies are expected to announce robust earnings but we might see some correction if there are any shortfalls in their results as expectations from the sector are very high.”

Selling pressure was visible across the board as all the 11 sector gauges, barring the index of real estate shares, were trading lower led by the Nifty Metal index’s 1.4 per cent decline. Nifty FMCG, Pharma, PSU Bank, Auto, Financial Services and Bank indices dropped 0.5-0.9 per cent.

Mid- and small-cap shares were trading mixed as Nifty Midcap 100 index was trading flat and Nifty Smallcap 100 index advanced 0.3 per cent.

Hindalco, JSW Steel, Tata Motors, Sun Pharma, Tata Steel, ONGC, Hindustan Unilever, Cipla, Britannia Industries, Bajaj Finance and Grasim Industries were among the top Nifty losers.

On the flipside, Bajaj Auto, Shree Cements, NTPC, IndusInd Bank, Titan and Tech Mahindra were among the gainers.

The overall market breadth was positive as 1,667 shares were advancing while 1,400 were declining on the BSE.

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Latest News Today – Reliance Industries Collaborates With Abu Dhabi National

This is Reliance Industries’ first investment in a greenfield overseas project.

Refining giant Reliance Industries has signed an agreement with Abu Dhabi National Oil Co (ADNOC) to build a multi-billion-dollar chemical project in Ruwais, marking the group’s first investment in a greenfield overseas project.

Reliance, which operates the world’s biggest refining complex at Jamnagar in western India, is becoming more international in its focus. Previously, it has bought stakes in some overseas explorations and manufacturing assets.

“This is a significant step in globalising Reliance’s operations, and we are proud to partner with ADNOC in this important project for the region,” Mukesh Ambani, the chairman of Indian oil-to-telcom conglomerate, said in the statement.

Asia’s richest man Ambani last week announced the appointment of Saudi Aramco chairman Yasir Al-Rumayyan as a director in Reliance’s board and said this is the “beginning of the internationalisation of Reliance”. The group hopes to formalise a deal to sell 20 per cent stake to Aramco in its oil-to-chemical business.

In a joint statement, Relaince and ADNOC said they expected final investment decisions for the projects and awards of related engineering contracts to be taken in 2022. A source familiar with the matter said the project could cost $2.1 billion.

The planned project at TA’ZIZ Industrial complex will have a capacity to produce 940,000 tonnes of chlor-alkali, 1.1 million tonnes of ethylene dichloride and 360,000 tonnes of PVC annually, the statement said.

Reliance and ADNOC had signed a memorandum of understanding in 2019 to build Ethylene Dichloride facility in Ruwais.

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