Reliance Industries (RIL) gained 1.43% to Rs 2030.50 after the conglomerate announced that its subsidiary Reliance Retail Ventures (RRVL) has acquired equity shares of Urban Ladder Home Decor Solutions for a cash consideration of Rs 182.12 crore.
The said investment represents 96% holding in the equity share capital of UrbanLadder. RRVL has a further option of acquiring the balance stake, taking its shareholding to 100% of the equity share capital of UrbanLadder. RRVL said it proposes to make a further investment of up to Rs 75 crore, which is expected to be completed by December 2023.RRVL said 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, RRVL added.
UrbanLadder was incorporated in India on 17 February 2012. The company is in the business of operating a digital platform for home furniture and dor products. It also has a chain of retail stores in several cities across India. Its audited turnover was Rs 434 crore, Rs 151.22 crore and Rs 50.61 crore in FY 2019, FY 2018 and FY 2017 respectively. The company posted net profit/(loss) of Rs 49.41 crore, Rs (118.66) crore and Rs (457.97) crore in FY 2019, FY 2018 and FY 2017 respectively.
RIL is India's largest private sector company. Its activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and digital services.
RIL's consolidated net profit fell 15.05% to Rs 9,567 crore on a 25.50% decline in net sales to Rs 1,11,236 crore in Q2 September 2020 over Q2 September 2019.
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