Reliance Capital gains 2%, co may sell stake in Yatra.com
Media report suggests that the Anil Dhirubhai Ambani Group company may sell entire stake in online travel company for Rs 500 crore.
December 10, 2014 / 10:35 AM IST
Shares of Reliance Capital climbed as much as 1.9 percent intraday Wednesday on a media report that the Anil Dhirubhai Ambani Group company may sell entire stake in online travel company for Rs 500 crore.
"Reliance Capital, which invested Rs 40 crore in Yatra.com in 2006 for a 16 percent stake, has now decided to exit the investment, pocketing a return of about 12 times in eight years and valuing Yatra.com at over Rs 3,000 crore, or USD 500 million," the report said quoting unnamed sources.
That is half the valuation of its Nasdaq-listed rival MakeMyTrip, which has a market capitalization of USD 1.2 billion.
The report further said that the company aims to close the transaction in the next four to six weeks as part of its strategy to encash its minority investments to focus on its core business.
Other investors in Yatra.com include TV18 Group, Norwest Venture Partners, Intel Capital, IDG Ventures India and Vertex Venture.
At 09:41 hours IST, the stock was quoting at Rs 522.85, up Rs 7.25, or 1.41 percent on the Bombay Stock Exchange.
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