Reliance Allocates Rs.5,150 Crores to Infrastructural Investments
Reliance Industries Ltd (RIL) transferred Rs 5,150 crore to its warehouse InvIT infrastructure investment trust (InvIT) entity earlier this week. "Reliance Retail completed the transfer of assets to warehouse InvIT entity for a total consideration of Rs 5,150 crore on October 25th, 2023," said Reliance Retail's earnings statement on oct 27.
As of September 30, 2023, the asset value is now reflected in the 'Other Financial Assets' segment. RIL has established an InvIT to monetise its retail business's backend warehousing and logistics assets. In February of this year, Reliance Retail, which operates the retail business of billionaire Mukesh Ambani's Reliance Industries, registered the trust with the market regulator Securities and Exchange Board of India (Sebi).
The funds raised by the InvIT will be used to acquire warehousing and logistics assets via a special-purpose vehicle. Reliance Retail is investing in backend infrastructure such as warehousing, supply chain, logistics infrastructure, and facilities as it aggressively expands its presence across channels. Reliance Retail had 18,650 stores totaling 71.5 million square feet as of September 30.