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Reliance Retail Ventures acquires 96% stake in Urban Ladder for Rs 182 crore
Mumbai, November 15, 2020
Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries Limited (RIL), has acquired equity shares of Urban Ladder Home Décor Solutions Private Limited for a cash consideration of about Rs 182.12 crore.
The said investment represents ~96% holding in the equity share capital of UrbanLadder," RIL said in a filing to the stock exchanges on Saturday.
RRVL has a further option of acquiring the balance stake, taking its shareholding to 100% of the equity share capital of UrbanLadder, the filing said.
"RRVL proposes to make a further investment of up to Rs 75 crore. The further investment is expected to be completed by December 2023," it said.
UrbanLadder, incorporated in India on February 17, 2012, is in the business of operating a digital platform for home furniture and décor products. It also has a chain of retail stores in several cities across India.
UrbanLadder’s audited turnover was Rs 434.00 crore, Rs 151.22 crore and Rs 50.61 crore, and net profit / (loss) was Rs 49.41 crore, Rs (118.66) crore and Rs (457.97) crore in FY 2019, FY 2018 and FY 2017, respectively.
"The aforesaid investment will further enable the group’s digital and new commerce initiatives and widen the bouquet of consumer products provided by the group, while enhancing user engagement and experience across its retail offerings," the filing added.