Reliance Retail Limited

Reliance Retail Limited IPO Review, Allotment Status, Subscription, Price, Date & More.

Reliance Retail Limited is a subsidiary company of reliance industries limited. Founded in 2006, it is the largest retailer in India in terms of revenue. V Subramaniam is the CEO of the venture. Its Retail outlets offer foods, groceries, apparel and footwear, lifestyle and home improvement products, electronic goods, and farm implement and inputs. Reliance Retail’s outlets also provide vegetables, fruits, and flowers. It focuses on consumer goods, consumer durables, travel services, energy, entertainment and leisure, and health and well-being products, as well as on educational products and services. It had a total of 3,837 stores in April 2018 in India with an area of over 17.7 million square feet across 750 cities, with yearly revenue of over ₹690 billion ($10 bn us).

It had a turnover of ₹337 billion in the financial year 2016-17. Reliance Retail has announced revenues of ₹450 billion for the nine months ended December 2017 for financial year 2017-18, showing of over 90% jump from the corresponding previous period. Reliance Retail also reported a profit of ₹7 billion for the period.

Reliance Retail is Retail initiative of the reliance group and is central to consumer-facing businesses. It has in a short time forged strong and enduring bonds with millions of consumers by providing them an unlimited choice, outstanding value proposition, superior quality and unmatched experience across all its stores.

Reliance Retail has adopted a multi-prong strategy and operates a chain of neighbourhood stores, supermarkets, wholesale cash & carry stores, specialty stores, and online stores and has democratized access to a variety of products and services across diverse segments for Indian consumers.

Serving the food and grocery category Reliance Retail operates reliance fresh, reliance smart and reliance market stores.

In the consumer electronics category Reliance Retail operates reliance digital, reliance digital express mini stores, and JIO stores,

In fashion & lifestyle category it operates reliance trends, trends women, project eve, reliance footprint, reliance jewels and ajio.com in addition to a large number of partner brand stores across the country.

The operating model is based on customer-centricity while leveraging common centres of excellence in technology, business processes, and supply chain. More importantly, it has built a strong and unwavering foundation through its extraordinary people. The nationwide network of Retail stores offers a world-class shopping environment and unmatched customer experience.

Reliance Retail has emerged as the partner of choice for international brands and has established exclusive partnerships with many revered international brands such as diesel, Superdry, Hamleys, Ermenegildo Zegna, Marks & Spencer, Paul & Shark, Thomas Pink, Kenneth Cole, Brooks Brothers, Steve Madden, Payless Shoe Source, Grand Vision and many more.

Reliance Retail reported a turnover of Rs. 1,30,566 crores for the financial year 2018-19. As on 31st mar 2019, Reliance Retail operates 10,415 stores across 6,600+ cities with a Retail area of over 22 million sq. Ft.

Reliance Retail ventures limited; a subsidiary of reliance industries limited is the holding company of Reliance Retail Limited which operates the Retail business.

“the order clearly states that Reliance Retail is not willing to bring an IPO of Reliance Retail, but at the annual general meeting (AGM) on august 12, 2019, Mukesh Ambani promised listing of its Retail venture by 2024.

Reliance Retail Limited IPO has not been released yet. Once the IPO date has been issued, the subscription details will be updated regularly. The allotment status will be announced about 3-4 weeks of the IPO issue date. The price band of the IPO will be known only after the offer price of the IPO issue is known. One can know about the price band of the IPO in about a week. Till then stay tuned for Reliance Retail IPO dates, Reliance Retail IPO price band and Reliance Retail IPO market lot details.

Financial review of Reliance Retail Limited:

-        In financial year 2018-19 company’s revenues at Rs. 1,30,566 cr. Nearly doubling from Rs. 69,198 cr. In 2017-18.

-        Earnings before interest, tax, depreciation and amortization (EBITDA) of Reliance Retail grew more than 5 times in the past 3 years from Rs. 1200 cr. In the year 2016-17 to Rs. 6201 crores in the year 2018-19.

-        Earnings per share of Reliance Retail is growing with a compound annual growth rate compound annual growth rate (CAGR) of 65.36% from the past 5 years.

-        This year profit before depreciation, interest, and taxes (PBDIT) increases by 145.2% compared with the previous year.

-        Company’s net profit margin is continuously improving a recorded 2.6% in financial year 2019 which was 1.7% in financial year 2017.

-        Reliance Retail’s net profit is growing at a pace of 65.72 % on a compound annual growth rate (CAGR) basis since financial year 2014-15.

-        The financial performance of Reliance Retail is outstanding and business has a lot of potentials to grow further.

Planify view over Reliance Retail Limited:

-        Reliance Retail Limited has achieved the distinction of being 6th fastest-growing retailer globally and ranked 94th in the list of global powers of retailing in the country.

-        It operates in over 10,644 stores pan India in over 6,700 towns and cities with ~23 million square feet of Retail space and is growing rapidly.

-        Company’s brand Hamleys crossed the 75-store milestone and currently has 76 operational stores in India and is the largest market for Hamleys outside of the United Kingdom.

-        Strong management with a magnificent business track record and also backed by giant reliance industries.

-        Financials and business models are super strong and Reliance Retail is already outperforming its peers and planning to create a monopoly in the Retail business.

-        To summarize, we at Planify rate it 4 out of 5 after analysing each and every aspect and business segment of Reliance Retail.

Disclaimer:

Generally, investments made in Pre-IPO are speculative, illiquid and carry a high degree of risk. The investment made on the Planify platform is made through pooled investment vehicles, which acquire shares of private technology companies and are not a direct investment in these companies.