Indian shares soared high the day right after the news of Silver Lake Partners $1 billion investment to Reliance Retail Ventures broke out. Additional investments are expected to follow the recent announcement. Following the news, Indian shares have also soared high along with Reliance Industries’ value.
Reliance Industries soar higher, more growth expected in the future
Reliance, which originally started as an oil and gas business, has just launched its online grocery service. The online grocery mall was first launched in May when the Indian government enforced quarantine and lockdowns due to the pandemic. Reliance retail then started to build its presence through acquisitions. In developing its retail business, Reliance utilized its Jio tech platform. Reliance Retail Ventures now owns at least 12,000 online grocery stores and fashion chains.
Mint reported the recent investment from California-based private equity fund, Silver Lake, took 1.75% stake in Reliance Retail Ventures. The company now values at ₹4.21 trillion, which roughly converts to $57 billion. Previously, Reliance’s global investors, such as Facebook Inc, has raised around $20 billion. The fund came from selling stakes in Jio Platforms digital business. Shares of Reliance industries is now said to have exceeded twice the value of its March lows in ₹867.
Reuters further quoted Deepak Jasani of Mumbai HDFC Securities that the recent news reflects Reliance’s success prior to the retail venture’s development. Previously, Jio Platforms digital business went through an investment through similar fundraising. This time, Reliance replicate the same process on a different field, retail. Jasani also mentioned that investors may want to expect more good news soon.
How Reliance affect the Indian shares
The halt in the Wall Street stock market deal contributed to higher Asian stock markets. Along with this, Indian shares also surged higher due to Reliance. Reuters noted the Nifty energy index rose 1.73% due to Reliance. Meanwhile, Bharti Infratel Ltd and UPL Ltd, which considered as the high-achiever in the Nifty fell to 1.9% and 1.5% respectively.