As per Bombay Stock exchange filing, Reliance Retail Ventures Limited, a subsidiary of Reliance Industry, and having ~99% stakes in Reliance Retail, has acquired 7,86,191 equity shares representing 100% of the equity share capital of Shri Kannan Departmental Store Private Limited (SKDS) for a consideration of INR 152.5 crores.
SKDS, incorporated on September 15, 1999, is engaged in the business of retailing fruits & vegetables, dairy, staples, home & personal care and general merchandise to consumers.
SKDS currently operates 29 stores across Coimbatore and nearby areas with a retail area of over 6 lakh sq. ft.
SKDS reported revenue from operations of INR 415 crore, INR 450 crore and INR 481 crore and Net Profit of INR 2 crore, INR 3 crore and INR 4 crore in FY2018-19, FY2017-18 and FY2016-17 respectively.
The aforesaid investment will further strengthen the group’s retail operations and presence in the state of Tamil Nadu and will further enable retail and new commerce initiatives.
Positive for Reliance Retail share, as they are getting a company that is generating an annual revenue of Rs. 450 Cr at just Rs. 152 cr.