Mumbai: Reliance Retail Ventures Ltd (RRVL), a subsidiary of Reliance Industries (RIL), on Saturday announced the acquisition of Future Group’s retail, wholesale business, logistics and warehouse business. The deal between Reliance Retail and Future Group will be for Rs 24,713 crore. The deal between the two companies is being done under a special scheme in which Future Group is merging some future business entities into Future Enterprise Limited (FEL). Under this scheme, Reliance and wholesale ventures are being transferred to Reliance Retail and Fashion Lifestyle Limited (RRFLL).
Under this scheme:
- Retail and wholesale wholesale undertaking is being transferred to Reliance Retail & Fashion Lifestyle Limited (RRFLL). This company is owned by RRVL.
- Logistics and Warehousing Undertaking is being transferred to RRVL.
- RRFLL has also come up with investment proposals, which are as follows. After the merger, FEL will invest Rs 1200 crore through preferential issue for 6.09 per cent equity shares. There will be an investment of Rs 400 crore for preferential issue through equity warrant. The acquisition by RRFLL will be completed after conversion and payment of 75%.
What isha ambani said
Isha Ambani, director of Reliance Retail Ventures, said, “After this transaction, we are adopting this popular brand of Future Group. We will also save its business ecosystem. Future Group has played an important role in the development of modern retail business in India ‘
She said, ‘Growth Momentum is expected to continue in the retail industry. As a major consumer brand, we are actively supporting small businesses and grocery stores under our special model. We are committed to serving our customers across the country.
