Reliance Industries today announced that GIC will invest Rs.5,512.5 crore globally in its retail arm Reliance Retail Ventures Limited (RRVL) and TPG will also invest Rs. 1,837.5 crore in its retail arm.
In a regulatory filing, Reliance Industries said that both GIC and TPG investment would convert on a completely diluted basis 1.22 percent equity stake and 0.41 percent equity stake in RRVL respectively.
RRVL, a Reliance Industries affiliate. At a pre-money equity value of Rs. 4.285 lakh crore, this investment values RRVL. On a completely diluted basis, GIC ‘s investment would translate into a 1.22 percent equity interest in RRVL.
“It gives me great pleasure to welcome GIC to the Reliance Retail family,” said Mukesh Ambani, Chairman and Managing Director of Reliance Industries. I am pleased that GIC is partnering with Reliance Retail in its quest to change the Indian retail landscape with its track record of nearly four decades of active long-term value investment around the globe. The global network and track record of long-term collaborations of GIC will be invaluable to Indian Retail ‘s transformation storey. This investment reflects a clear endorsement of our plan and of the potential of India.
GIC Chief Executive Officer Lim Chow Kiat said: “GIC is pleased to partner with Reliance through this new investment, which will allow the company to place Reliance Retail in India’s retail market for strong secular growth.” We assume that to add value to its clients and shareholders, Reliance Retail will continue to use its vast supply chain and store networks, as well as solid logistics and data infrastructure.
It will be TPG ‘s second investment in a Reliance Industries subsidiary, following a ~4,546.8 crore investment announced earlier this year in Jio Platforms.
Regulatory changes, market demographics and technological innovation are causing seismic shifts across the entire retail value chain in India, said Jim Coulter, Co-CEO, TPG. Reliance Industries has used technology and scale to place Reliance Retail as an extremely powerful, well-organized, and creative leader in the midst of this transition. We are excited to join them as they aim to develop a more inclusive retail industry that enables the connectivity, performance, and accessibility of the omnichannel Reliance Retail platform to benefit Kiranas and Indian customers.
“Isha Ambani, Director of Reliance Retail, said,” In our journey to revolutionize the Indian Retail landscape and boost the economic prospects of millions of merchants and enhance customer experience, we are delighted to welcome TPG to the Reliance Retail family. The rich experience of TPG will be invaluable to the Reliance Retail task.
Reliance Retail Limited, an RRVL subsidiary, operates the biggest, fastest-growing and most profitable retail company in India serving nearly 640 million footfalls through its nationwide ~12,000 stores
Morgan Stanley was Reliance Retail’s financial advisor, and Cyril Amarchand Mangaldas and Davis Polk & Wardwell were legal advisors. TPG acted as a financial advisor to Deloitte Touche Tohmatsu India LLP and TPG acted as legal counsel to Shardul Amarchand Mangaldas & Co.