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Research Periodic Report KKR Boosts Stake in Reliance Retail with Rs 2,069.50 Crore Investment

KKR Boosts Stake in Reliance Retail with Rs 2,069.50 Crore Investment

Written by - Fisdom Research

September 12, 2023 4 minutes

Opening Bell:

Gift Nifty is up by 6.5 points in the early morning trade, indicating a positive opening for Indian stock market.

Asia-Pacific markets saw broad gains on Tuesday, following a tech rally in Wall Street driven by Tesla and Qualcomm. Tesla shares surged 10% after a Morgan Stanley upgrade, while Qualcomm’s shares rose nearly 4% due to a deal with Apple for 5G modems through 2026. Positive investor sentiment was also supported by a report indicating that the Federal Reserve is unlikely to raise rates at its upcoming meeting. In Australia, the S&P/ASX 200 climbed 0.14%, ahead of the country’s business confidence survey for August. Japan’s Nikkei 225 opened 0.73% up, while the Topix also rose 0.72%. South Korea’s Kospi gained 0.21%, and the Kosdaq was 0.59% higher, and Hong Kong’s Hang Seng futures pointed to a weaker open compared to the previous close.

Stock futures dipped slightly on Monday night following a positive day. Dow Jones futures fell 0.1%, while S&P 500 and Nasdaq 100 futures both slipped 0.1%. Oracle’s stock declined 9% in after-hours trading due to missed revenue expectations, but it exceeded earnings estimates. This comes after a winning day on Wall Street, where the Nasdaq Composite led with a 1.1% gain, and the S&P 500 and Dow saw gains of about 0.7% and 0.3%, respectively. This marked the second positive session for the S&P 500 and Nasdaq and the third for the Dow.

Stocks News:

👉Reliance Industries: Reliance Retail Ventures Limited announced today that global investment firm KKR, through an affiliate, will invest ₹ 2,069.50 crore into RRVL, a subsidiary of Reliance Industries Limited. This investment values RRVL at a pre-money equity value of ₹ 8.361 lakh crore, which makes it among the top four companies by equity value in the country. KKR’s follow-on investment will translate into an additional equity stake of 0.25% in RRVL on a fully diluted basis. This, combined with its stake from its investment of ₹ 5,550 crore in RRVL in 2020, will take its total equity stake in RRVL to 1.42% on a fully diluted basis.       

👉L&T, the engineering and construction giant, raised its share buyback offer price to ₹3,200 per share from ₹3,000 due to a stock rally and narrowing premium to market price since the initial announcement in July. This buyback, the first in L&T’s history, involves a potential purchase of a 2.4% stake, equivalent to 33.33 million shares, from public shareholders through a stock exchange book-building process.

👉ICICI Bank: RBI has approved the re-appointment of Sandeep Bakhshi as Managing Director & CEO of the Bank with effect from October 4, 2023 till October 3, 2026, the company said. At the Annual General Meeting held on August 30, 2023, the Shareholders had already approved the appointment of Bakhshi for the above mentioned period.

👉Tata Steel shareholders have approved the reappointment of TV Narendran as Global Managing Director and CEO for the next five years, with 99.47% of total shareholder votes in favor. Narendran will continue to oversee the company’s growth as CEO and MD of Tata Steel.

👉Foreign institutional investors (FII) purchased shares worth Rs 1,473.09 crore, while domestic institutional investors (DII) bought Rs 366.24 crore worth of stocks on September 11, provisional data from the National Stock Exchange (NSE) showed.

Domestic and International Events

  • The World Bank and the finance ministry of India have agreed to collaborate in creating a market structure for maximising social impact through corporate social responsibility (CSR) initiatives. World Bank President Ajay Banga and Finance Minister Nirmala Sitharaman discussed the outcomes of the G20 India Presidency and the World Bank Group’s engagement with India.
  • Saudi Arabia and India are exploring cultural initiatives to strengthen their ties. These include offering artist residencies, joint training programs in film, culinary arts, and visual arts, and preserving intangible cultural heritage and historical sites. Certain initiatives aim to introduce Indians to Saudi culture and vice versa, fostering mutual understanding and collaboration.
  • The benchmark oil price was little changed on Monday, holding above the $90 a barrel reached last week for the first time in 10 months following fresh Saudi and Russian crude output cuts. Brent crude rose by 12 cents to $90.77 a barrel while US West Texas Intermediate crude rose 8 cents to $87.59.
  • Gold rose on Monday, heading for its best session in nearly two weeks as the dollar retreated before this week’s key U.S. inflation reading that could influence the Federal Reserve’s interest rate decision later this month. Spot gold climbed 0.2 percent to $1,922.84 per ounce by 11:41 am ET, while US gold futures rose 0.2 percent to $1,949.6.

Key Equity Indices

Hang Seng18,096(0.6) %
Shanghai Composite3,1430.8 %
Dow Jones34,6640.3 %
DAX15,8010.4 %
FTSE 1007,4970.3 %
Nikkei32,468(0.4) %
Straits Times3,2180.3 %

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