Reliance’s share price continued to gain for the second straight session as the company announced raising funds from the Qatar Investment Authority (QIA).
What Happened: Reliance on Wednesday announced that the QIA through a wholly owned subsidiary will invest ₹8,278 crore in Reliance Retail Ventures at a valuation of ₹8.278 lakh crore. This translates to the QIA owning a 1% stake in the company. Media reports were rife with possible talks between the two entities.
Reliance Retail’s previous fundraise in 2020 from various global investors of an aggregate amount of ₹47,265 crore was done at a valuation of ₹4.21 lakh crore.
Reacting to the news CLSA maintained its ‘buy’ rating for the stock with a target price of ₹3,060. The global brokerage firm noted that the retail venture’s valuation doubled in three years and the QIA investment is at a valuation higher than consensus estimates.
The brokerage also said that any talks of an IPO at the company’s next annual general meeting (AGM) is something to watch out for. On the other hand, Citi maintained its “neutral” stance on the stock with a price target of ₹2,750.
Price Action: Reliance’s share price was up 0.36% to trade at ₹2,531.20 at market open on Thursday.
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