At an estimated valuation of around US $ 200 billion, Mukesh Ambani is reportedly preparing to make Reliance Retail public. This move comes after his previous announcement that Reliance Jio would be listed next year.
The FMCG division, Reliance Consumer Products, has been reorganised as a direct subsidiary of Reliance Industries as part of the preparation. In order to increase margins and obtain a favourable value prior to the IPO, Reliance Retail is also rationalising its extensive retail network by shutting underperforming locations.
Major investors including Singapore’s GIC, Abu Dhabi Investment Authority, Qatar Investment Authority, KKR, TPG and Silver Lake are anticipated to have exit options as a result of the IPO. Following the demerger, Reliance Retail will retain its formats, which include Reliance Smart, Freshpik, Reliance Digital, JioMart, Reliance Trends, 7-Eleven and Reliance Jewels. Depending on regulatory permissions, the restructuring process should be finished by the end of this month.
In FY ’25, Reliance Retail reported US $ 38.7 billion in revenue and US $ 2.9 billion in operating profit, resulting in an EBITDA margin of 8.6%. In the June quarter, this margin slightly increased to 8.7%. According to media sources, the corporation has been aiming for double-digit operating margins through cost optimisation and consolidation.
Reliance has, in the meantime, wiped off its investments in the hyperlocal delivery business Dunzo. According to Reliance Industries’ annual report, the company’s 78,923 equity shares, which were internally valued at Rs. 1,645 crore in FY ’24, were devalued to zero in FY ’25. In FY ’25, Dunzo only made Rs. 1 crore, and Kabeer Biswas, its Co-founder and CEO, left to work for Minutes, Flipkart’s fast commerce division.
According to media sources, market observers anticipate that Reliance Retail would list before Reliance Jio, which is scheduled for 2027, even if the IPO talks are still in their early stages.
