Mukesh Ambani may sell more stake of Isha Ambani led Rs 8.2 lakh crore Reliance Retail, preparing for IPO

Isha Ambani and Mukesh Ambani led Reliance Retail’s valuation zoomed to Rs 8.2 lakh crore after Qatar Investment Authority agreed to acquire 0.99% stake in the frim for Rs 8278 crore investment. Now as per a latest report by Economic Times, Reliance Retail’s parent company with over Rs 17 trillion market cap, Reliance Industries, may sell 8-10% stake in Isha Ambani led firm to back expansion as it prepares for IPO. The process is believed to take place in tranches over 12-15 months. As Reliance Retail’s valuation of Rs 8.2 lakh crore is considered to be too large for the market to absorb, the Reliance Industries may dilute another 7-10% equity to make IPO size manageable.

The report by Economic Times suggests that the proceeds from selling the stake in Reliance Retail will be used to reduce debt and to expand the outlets. Mukesh Ambani named Isha Ambani as new leader of Reliance Retail in August 2022. At that time, the frim was able to achieve Rs 2 lakh crore turnover. Jimmy Choo, Georgio Armani, Hugo Boss, Versace, Michael Kors, Brooks Brothers, Armani Exchange, Burberry and many other global brands are available in India as a Reliance Retail partner brand.

Reliance Retail’s valuation has doubled in the last 3 years and since Isha Ambani took the lead of Reliance Industries’ subsidiary, it has been aggressive with the expansion. Earlier this week, Reliance Retail launched a new affordable clothing brand called Yousta in India that rivals Tata Group owned Zudio.