Two global advisers value Reliance Retail (RRL) at Rs 7.42-7.72 trillion ($9-93 billion) ahead of a possible first stake sale by parent Reliance Industries (RIL). Only three other companies — RIL, Tata Consultancy Services and HDFC Bank are valued higher than RRL.

On Friday, RIL proposed to buy back its unlisted subsidiary RRL from shareholders (other than promoters and holding companies) at Rs 1,362 per share to reduce its share capital. This is based on the valuation of two independent valuers, RIL said in a stock exchange update, adding that the board had approved the proposal on Friday.

RIL will buy back shares traded in the grey market and offer them to employees as stock options. Upon approval, RIL will cancel these shares.

Reliance Retail Ventures (RRVL), which is 85.06% owned by RIL, owns 99.93% of RRL, with the remaining 7.86 million shares held by other shareholders.

RIL appointed both global advisors. EY has valued RRL shares at Rs 884.03 per share, while BDO Valuation Consultancy has valued it at Rs 849.08 per share. This brings the company’s total valuation to Rs 7.42 and Rs 7.72 trillion, respectively.

RIL is proposing to buy the shares at Rs 1,362 per share, representing a premium of Rs 477.97 and Rs 512.92 per share compared to the price determined by the valuers.

The proposal is still subject to the approval of shareholders and a Mumbai bench of the National Company Law Tribunal, and the company will seek shareholder approval through a special resolution.

In early 2020, Reliance Retail Ventures raised Rs 47,265 crore ($5.72 billion) for a 10.09% stake in the company, valuing it at around $57 billion. Earlier in 2019, RIL chairman Mukesh Ambani had said the group intended to list RRL within five years. RRL and its telecom subsidiary, Reliance Jio Infocomm, operate 18,040 stores, supermarkets, fashion stores and online grocer JioMart.

Before the announcement, shares in RIL closed flat at Rs 2,629 per share on the NSE on Friday.