In order to fund its long-term investment goals, Reliance Industries poured over Rs. 14,839 crore as debt into Reliance Retail during the previous fiscal year. This is because the company’s flagship retail operation is expanding into small towns and experimenting with new store models.
According to the company’s most recent financial statement, the funding—which is the highest the parent has provided in the previous ten years—was sent as an inter-corporate deposit from the holding company, Reliance Retail Ventures. In the previous fiscal year, the parent company invested around Rs. 19,170 crore in Reliance Retail, comprising Rs. 4,330 crore in equity.
Analysts interpret Reliance Retail’s acceleration of bank loan repayments as a sign that the company is getting ready to clean up its balance sheet in front of an IPO. Reliance hasn’t formally disclosed any plans for an IPO in the retail sector yet.
The company stated that it invested in enhancing supply-chain infrastructure and omni-channel capabilities over the year in its FY ’24 earnings announcement. Additionally, it introduced new formats, such as the Yousta value retail chain and the Swadesh brand of handicraft stores.
