RIL share price rises as company agrees to buy remaining stake in IMG-Reliance JV
No governmental / regulatory approvals are required for the aforesaid acquisition.
December 28, 2020 / 09:48 AM IST
Reliance Industries (RIL) share price rose in early trade on December 28 as the company said it will buy IMG Worldwide’s 50 percent stake in the joint venture entity.
IMG Reliance Limited (IMG-R) is a joint venture between IMG Worldwide LLC (IMG) and RIL.
IMG Singapore Pte. Ltd., a wholly-owned subsidiary of IMG, holds 50 percent of the share capital of IMG-R.
The company has entered into definitive agreements to acquire the shares held by IMG Singapore Pte. Ltd in IMG-R for a cash consideration not exceeding Rs 52.08 crore, as per the press release.
Post completion of acquisition, IMG-R will become a wholly-owned subsidiary of RIL and will be rebranded.
No governmental/regulatory approvals are required for the aforesaid acquisition and the acquisition is expected to be completed during this calendar year, it added.
IMG-R had a turnover of Rs 181.70 crore (including GST of Rs 25.79 crore), Rs 195.55 crore (including GST of Rs 28.95 crore) and Rs 158.26 crore (including GST of Rs 20.71 crore); and net profit of Rs 16.35 crore, Rs 19.25 crore and Rs 15.82 crore in FY20, FY19 and FY18, respectively.
At 09:20 hrs Reliance Industries was quoting at Rs 2,016, up Rs 21.85, or 1.10 percent on the BSE.
The share touched its 52-week high Rs 2,368.80 and 52-week low Rs 867.45 on 16 September, 2020 and 23 March, 2020, respectively.
Currently, it is trading 14.89 percent below its 52-week high and 132.41 percent above its 52-week low.Disclaimer: Reliance Industries is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd. which publishes moneycontrol.com