Looking to cash in on e-commerce boom, Reliance Capital is all set to sell its 16 per cent stake in leading travel portal Yatra.com for an estimated Rs 500 crore and is in talks with 2-3 international investors. The deal would mark an over 12-times appreciation for this investment by Reliance Capital, the financial services arm of Anil Ambani-led business conglomerate Reliance Group, which had acquired a 16 per cent stake in the online travel company for Rs 40 crore in 2006. Sources said that Reliance Cap is in talks with 2-3 leading international investors to sell this 16 per cent stake for an estimated USD 80 million (about Rs 500 crore). The identity of the interested buyers could not be ascertained.
During the last fiscal 2013-14, MakeMyTrip is estimated to have clocked total transaction value of USD 1.38 billion on its platforms, as against USD 763 million by Yatra. The operating income of MakeMyTrip and Yatra stood at USD 116 million and USD 51 million, respectively, for the year.
Reliance Capital recently announced its plans to focus on core business and is in the process of encashing its minority investments. It also recently exited from day to day operations of its global film and media services business, by merging its global film and media services business with Prime Focus. The deal created the world's largest media services power house, with an order pipeline of Rs 2,000 crore, over 5,500 employees and operations in the US, UK, Canada, China and Singapore, besides India. Reliance MediaWorks and Prime Focus promoters infused fresh equity capital of Rs 120 crore each into Prime Focus. A number of international investors have recently pumped funds in Indian e-commerce or e-retail companies. These include Singapore's state-owned investment company Temasek Holdings and asset management firm BlackRock along with other investors investing USD 100 million in Snapdeal. Besides, Japan's SoftBank also invested USD 627 million in Snapdeal. Flipkart has also received as much as USD 1 billion in fresh capital from investors.