Anil Singhvi on RIL-Future deal; Market Guru says positive for RIL shares; reveals who all will benefit

RIL-Future Group deal; The deal between Reliance Retail and Future Group is positive for Reliance Industries Limited (RIL), Zee Business Managing Editor Anil Singhvi said. After this acquisition, Reliance Retail becomes a sizeable company, the Market Guru said.  

The Foreign Institutional Investors (FIIs) are comfortable putting their investments in companies which are leaders in their respective segments. This acquisition has been made at a very good valuation, he said.

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RIL- फ्यूचर ग्रुप डील से किन सरकारी बैंकों को फायदा?

अनिल सिंघवी- रिलायंस के लिए पॉजिटिव, फ्यूचर एंटरप्राइजेज के लिए निगेटिव...#FutureGroup #RelianceRetail @AnilSinghvi_ pic.twitter.com/P6Kwhl1VOE

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While this is not going to happen immediately, Singhvi said that he will not be surprised if the RIL shares appreciate by another Rs 250-Rs 300, going forward. The company is capable of pulling off any investments, especially after what was seen in Jiomart. The next round of funding, when we could see FIIs coming and buying stake in the company, will be interesting.  

A big market share in the retail segment will become handy for the company. 

This deal also augurs well for the various companies of Future Group barring Future Enterprises Limited (FEL) as the shares are being purchased at a premium price in terms of swap ratio.  

FEL is already trading over a price at which the deal has been made. The FEL stock price is likely to come down as the equity dilution will be massive.  

Though this deal may not look very positive, but this could be the best valuation under the current circumstances. 

This deal is also being seen to have a positive impact on the banks. The banks will likely settle the loans after taking a haircut of 40 per cent. The good thing is that the matter is resolving. This could be good news for public sector banks especially Bank of India, though only mildly, the Market Guru said. 

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If the investors are willing to invest based on the news around the deal, then it is advisable that they invest in RIL shares, Singhvi said.