From Rs 400 per piece in 2019, the shares of Reliance Retail, went up to Rs 4000 by 2021 in the unlisted market. Reliance Retail is India’s largest operator of supermarkets, apparel outlets, and electronics stores. And its shares were the hottest cake in the grey market for a while.
Many investors expected it go go for a public listing until a little more than a week ago when Mukesh Ambani threw in a surprise. The company said it would effectively cancel the holdings of its minority investors and offer them Rs 1,362 per share. Basically, Reliance Retail had cancelled its shares held by minority investors leaving them shocked and confused.
What made the company take this decision? And what should retail investors learn from this?
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