I appreciate the initiation of this thread and its potential to benefit all members. Well tbh I am skeptical about Reliance’s investments in companies and their genuine efforts towards ensuring the long-term success of these companies. I would like to highlight the data and numbers of the investments made by Reliance in the following companies:
Company Name Investment Price Current Share Price
Balaji Telefilms ₹164 ₹39.80
Just Dial ₹1,022.25 ₹673.15
Sterling & Wilson Solar ₹375 (primary/secondary) / ₹405 (open offer) ₹297
Alok Industries Not disclosed ₹15
Den Networks ₹72.66 (preferential) / ₹90.03 (open offer) ₹34
Hathway ₹32.35 (preferential) / ₹32.81 (open offer) ₹13.10
For example, when Reliance acquired stake in Just Dial, they stated that the acquisition would help boost their digital ecosystem for millions of their partner merchants, micro, small, and medium enterprises. They also mentioned that they would leverage Just Dial’s database of merchants and its platform to provide various services, including discovery, transactions, payments, logistics, and credit.
(IMO they’re going to use this database of their partner merchant for Jio financial services)
Similarly, Reliance said that the acquisition of Hathway would help accelerate the rollout of their fiber-based broadband service, JioGigaFiber, and that they would benefit from Hathway’s cable network infrastructure and customer base.
My point is that I do not believe that Reliance acquires stakes in companies solely for the purpose of generating profit or improving the company’s prospects for the benefit of its shareholders. Rather, I believe that they do so to gain access to the resources or network that the company has built in its early years and leverage it to expand or gain a competitive edge in their existing businesses.
If they are genuinely interested in ensuring the success of these businesses, they would name them around their brand rather than leverage their existing network.
We all often believe that when a large corporation purchases a stake in a business, the acquired company will gain access to the resources and management expertise of the larger corporation. However, this is not always the case, especially when it comes to family-owned businesses. In many cases, family-owned businesses are tightly knit and have a strong focus on maintaining their legacy and ensuring the success of their core business. Moreover, the fall in share price of the acquired company may not necessarily be due to the lack of support or resources from the acquiring corporation. There could be other factors at play.
These are just my observations and opinions, and I acknowledge that I may be incorrect or misinterpreting the available data and news. Also I apologize in advance if I have made any mistake, this is my first time interacting on this site.