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In order to support its long-term investment plans, Reliance Industries has made an investment of Rs 14,839 crore in Reliance Retail as debt in the last fiscal year. The company wants to expand its horizons in small towns and seek different new store formats. With respect to the company’s financial reports, it was stated that the largest funding was done in the form of inter-corporate deposits under Reliance Retail Ventures in the last ten years.
Moreover, in the last fiscal year, the parent company has invested about Rs 19,170 crore in retail, including Rs 4,330 crore in equity. Meanwhile, Reliance Retail has accumulated repayments of bank loans in order to reflect as a signal of preparations in the company to clear up its balance sheet rather than the initial public offering. However, the company wanted to announce its IPO (initial public offering) plan formally for the betterment of the retail business. The earnings done by the company in the financial year 2024 involve several investments that were made in order to boost supply-chain infrastructure and omni-channel capabilities.
The investments often include new formats, such as retail chain Yousta as well as handicraft stores inculcated under the Swadesh brand. As retail enjoys benefits under the parent company, it will be interesting to see how it evolves over the next few years while going public. Mohit Yadav, founder of India’s leading legal tech company AltInfo, said that the ability of retail to sustain growth will potentially transform its traditional financing sources. The holding company has increased its equity by Rs 17,814 crore in the financial year 2024.
About Rs 8,019 crore in long-term bank loans was paid by Reliance Retail in the last year, which was huge compared to the financial year 2023. The overall debt increased from Rs 70,944 crore in 2023 to Rs 81,060 crore in 2024 as the funding was done by the holding company by means of the debt route.
