Reliance Industries (RIL) share price gained over 1 percent in the early trade on November 17 after its subsidiary acquired stake in Urban Ladder Home Decor Solutions.
Reliance Retail Ventures (RRVL), a subsidiary of Reliance Industries (RIL) has acquired equity shares of Urban Ladder Home Decor
Solutions Private Limited for a cash consideration of ~ Rs 182.12 crore. The said investment represents ~96% holding in the equity share capital of UrbanLadder, company said in the release.
RRVL has a further option of acquiring the balance stake, taking its shareholding to 100% of the equity share capital of UrbanLadder, it added.
RRVL proposes to make a further investment of up to Rs 75 crore which is expected to be completed by December 2023.
The aforesaid investment will further enable the group’s digital and new commerce initiatives and widen the bouquet of consumer products provided by the group, while enhancing user engagement and experience across its retail offerings.
No governmental or regulatory approvals were required for the said investment.
The investment does not fall within related party transactions and none of RIL’s promoter / promoter group / group companies have any interest in the transaction, company further said.
Morgan Stanley has kept overweight rating on Reliance Industries with a target at Rs 2,247 per share. The Urban Ladder marks company’s first acquisition in digital home. Decor, an area that it has highlighted would be in focus, reported CNBC-TV18.
At 09:26 hrs Reliance Industries was quoting at Rs 2,028.20, up Rs 25.90, or 1.29 percent on the BSE.
Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd. which publishes moneycontrol.com