The most recent regulatory filing made by Reliance Retail to the Ministry of Corporate Affairs indicates that Reliance Industries invested Rs. 4,330 crore in its flagship retail business Reliance Retail during the previous fiscal year.
The investment used a combination of loan and equity, which is different from FY ’23 when it was fully financed by debt. Reliance Retail Ventures (RRVL), the holding company for all of Reliance Industries’ retail operations, is a wholly-owned subsidiary of RIL that provided the investment.
Reliance Retail has given its supply chain assets to Reliance Logistics and Warehouse Holdings (RLWH) at a valuation of Rs. 8,000 crore, according to the announcement. In March, the board of Reliance Retail gave its approval to the idea.
According to the documents, the Rs. 4,330 capital infusion was paid for in two installments: Rs. 330 crore in redeemable preference shares and Rs. 4,000 crore in equity. As of July 2023, the amount of debt made up of holding company and bank unsecured loans after these allocations was Rs. 73,602 crore. As Reliance Retail has mostly relied on debt to fund its growth and operations, ET had previously disclosed that the company’s total debt as of FY ’23’s end was Rs 70,943 crore.