SEBI having banned Kishore Biyani from accessing the securities market for 1 year, as also, trading in Future Retail share for 2 years, probably will be seen a big impediment to Reliance Industries Ltd, (RIL) as its Rs. 25,000 crore deal to acquire Future Group, to make its Jio Mart subsidiary rise vertically has been pushed behind, maybe by atleast 1 year or so. Court and Arbitration litigations will be filed and counter filed by Amazon and Future Group (largely for RIL) which will see delay of atleast 12 months, in addition to huge legal costs. Amazon is learnt to have moved to Supreme Court against Order of Division Bench of Delhi High Court.
When every retailer in India is vying to grow big, with Amazon, Flipkart, Tata, AV Birla, RIL seen eyeing big, late entrant may see losing big market share and may remain late forever. RIL having divested 10.09 % stake in Jio Mart for Rs. 47,266 crore to 8 global investors, is seen losing its valuations, thus unable to divest more, as also, unable to answer to these 8 buyers, thus losing its face as well. Jio Platform is already seen losing its face in front of its 32.97% stake buyer for Rs. 1,52,056 crore.
Does RIL is unable to bear its own load of hefty valuation asked, of Jio Platform and Jio Mart, which is making FIIs disappointed on the stock, who are seen to be seller in RIL now on every rise. Dull Q2 and Q3 numbers of RIL seen to be rubbing salt to wounds. RIL has seen to be gross underperformer in Bright rally seen for last 3 months of stock market. MSCI cut in RIL weight may see selling by FIIs, who were already seen seller in the stock. RIL share having risen to Rs. 2.055 in last 2 days, is seen ruling at an elevated levels and may ber thee brunt, if some relief is seen coming to Amazon from Apex Court.