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Reliance buys Kishore Biyani's retail business http://www.ecoti.in/01cwbZ via @economictimes
Finally closed. Some of my friends asked me about what it means for shareholders of Future Consumers and Future Retail...here is a quick rundown based on what I see.
Finally closed. Some of my friends asked me about what it means for shareholders of Future Consumers and Future Retail...here is a quick rundown based on what I see.
Future Consumer shareholders get 9 shares in the merged entity for every 10 shares they hold. When one considers the ratios for all the entities, an FCL shareholder gets 16.19% of the merged entity
Reliance has picked up a 6.09% stake in the merged FEL entity that will exist post the sale of the retail, warehousing and logistics portions implying a total valuation of ~19704cr. At 16.19% of this new entity FCL equity value comes to around ~3190cr.
Marketcap of FCL as of on 28thAug2020 close was ~2200. This implies a potential quick upside of 45%. Over an above this, FCL in their presentation talking about being able to grow at 25% p.a for the next few years due to the relationship with Reliance!
*disc..hold a very small tracking position, * this is not a recommendation
