Reliance AGM: Reliance Retail IPO date to new launches and acquisitions, here are key things to track

Chairman Mukesh Ambani-led Reliance Industries will host its 46th annual general meeting (AGM) on August 28.

The AGM comes just days after the oil-to-chemical-to-retail conglomerate’s retail arm Reliance Retail Ventures Ltd. (RRVL) announced that fresh investment by Qatar Investment Authority (QIA) will value the firm at Rs 8.27 lakh crore. QIA will be investing a sum of Rs 8,278 crore in the company for a 0.99 percent stake. This would rank Reliance Retail among the top four companies by total equity value in the country.

After billionaire Mukesh Ambani introduced daughter Isha as leader of his conglomerate's retail business last year, among key things to track at the AGM this year will be the performance of acquired brands and any announcements regarding new launches, expansion and acquisitions.

Investors will also keenly await any updates on the timeline of the separate listing of Reliance Retail. During the 2019 AGM, RIL had said that it would list its telco and retail business in the next five years. With four years gone by, most investors expect an update on the timeline of potential IPOs.

BOFA Securities, however, says it does not expect any IPO timelines at the AGM. Brokerage firm CLSA, on the other hand, had in January 2023 said, both or either of the two arms could go public over the next 12-18 months. During the 2022-23 fiscal, Reliance Retail registered a footfall of 780 million, which led to its customer base growing to 249 million during the year.

The firm has a merchant partner base of three million with 18,040 retail touchpoints and 65.6 million square feet retail area. “This year the business opened over 3,300 stores. The year reflects an unprecedented growth of retail footprint as business has added 25 million sq ft store area representing more than 50 percent growth of retail space Y-o-Y,” the company said in its annual report. Reliance Retail forayed into the personal care categories in the fast-moving consumer goods (FMCG) space and also became the official retailer of GAP in India to serve the mid-premium segment.

During the year, Reliance Retail entered into the beauty segment by launching the “Tira” digital platform and opening its flagship store in Mumbai. The business also expanded its product basket through acquisitions and partnerships at both local and global levels like Metro, Campa Cola, GAP, Pret A Manger, Lotus, Sosyo, Maliban, and Toffeeman among others.

Following the launch of Sosyo and Campa Cola, Reliance Retail saw 11 times the growth in the first quarter of the current fiscal. Most recently, the company announced the launch of its youth-focused fashion retail format, Yousta, with the opening of its first store in Hyderabad’s Sarath City Mall. This will be targeted at consumers in the age group of 15-25 years at affordable prices.