Reliance Industries Up 4% On Urban Ladder Stake Buy; Pares Gain Later

Shares of Reliance Industries in early trade on November 17, 2020 are up by over 1.5% after earlier recording gains of more than 4% to day's high of Rs. 2084 apiece on the BSE. In the pre-opening session also the stock was up by a huge 4.13% at Rs. 2085 per share on the BSE. Meanwhile, benchmark indices also traded strong as Moderna claimed that its vaccine is 94.5% effective, giving world more hope of an earlier recovery from the Covid 19 pandemic.

On Sunday, the conglomerate's retail unit Reliance Retail Ventures Limited (RRVL) acquired 96% stake in Urban Ladder Home Decor Solutions Private Limited (UrbanLadder) for a cash consideration of Rs 182.12 crore. The company has an additional option of acquiring the remaining stake in the firm, taking its shareholding to 100% of the equity of Urban Ladder.

Also, the company plans to make an additional investment of Rs. 75 crore which is expected to be done by December 2023.

The investment will broaden the company's bouquet of consumer product offerings and also aid the group's new-commerce and digital initiative, while improving user experience and engagement.

Urban Ladder, incorporated in the year 2012, runs an online platform that provides furniture and other décor products. The company also has retail outlets spanning several cities of India.

At around 9:40 am, the stock of RIL quoted higher by just 1% or Rs. 19.95 at Rs. 2021.75.

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