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Mukesh Ambani's Reliance Retail Hits Record Valuation of $92-96 Billion

Global Consulting Firms Place $92-96 Billion Price Tag on Reliance Retail, Anticipation Builds for IPO

8 July 2023

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Kunal Tyagi

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  • India's Reliance Retail, led by Mukesh Ambani, has been valued at $92-96 billion by global consulting firms, fueling speculation about a potential IPO.

  • EY valued the company at $96.14 billion, while BDO priced it at around $92 billion, showcasing the rapid growth of Ambani's businesses.

  • Reliance Retail encompasses Ambani's core retail enterprises, including digital and brick-and-mortar stores, as well as international partnerships and consumer goods.

India's Reliance Retail, headed by Mukesh Ambani, the wealthiest man in Asia, has recently been valued at a staggering $92-96 billion by two global consulting firms. This evaluation has sparked speculation about the company's potential plans for an initial public offering (IPO). Reliance appointed EY and BDO as independent valuers, with EY valuing the company at $96.14 billion and BDO pricing it at approximately $92 billion. While official statements from Reliance, EY, and BDO are awaited, the valuations indicate the rapid growth of Ambani's businesses.


Growing Business Ventures:


Reliance Retail encompasses Ambani's core retail enterprises, including both digital and brick-and-mortar stores. As a fully owned subsidiary of Reliance Retail Ventures, it also oversees other retail operations such as international partnerships and Ambani's consumer goods business. The significant valuations suggest that consultants are recognizing the rapid expansion and success of Ambani's ventures.


Impressive Fundraising and Investor Confidence:


In 2020, Reliance Retail Ventures successfully raised 472.65 billion Indian rupees (approximately $5.72 billion) by selling a 10.09% stake. This transaction valued the company at around $57 billion, and notable investors included KKR, the Saudi Public Investment Fund, General Atlantic, and the UAE's Mubadala. The substantial investments from renowned entities demonstrate the confidence and interest in Ambani's retail empire.


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Potential IPO on the Horizon:


News of the valuation arrives amidst speculations about Reliance's retail division going public through an IPO. Ambani has expressed his intention to list his retail operations, but specific details and a timeline have yet to be disclosed. The current valuations may signal that Reliance Retail is inching closer to this strategic move, creating anticipation and interest among investors and industry observers.


Consultants' Valuations:


EY and BDO, the appointed independent valuers, estimated Reliance Retail's value per share at 884.03 rupees and 849.08 rupees, respectively. These valuations reflect the perceived worth of the company based on its financial performance and growth potential. As the numbers suggest, Reliance Retail has garnered substantial value and continues to solidify its position in the retail sector.


Global Brand Partnerships:


Reliance Retail has actively engaged in partnerships with renowned global brands to introduce and expand its presence in the Indian market. Collaborations span various sectors, including fashion, food, and luxury, with notable names such as Burberry, Pret A Manger, and Tiffany. These partnerships exemplify Reliance Retail's commitment to offering diverse and quality products to Indian consumers while strengthening its position as a key player in the retail landscape.


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