- RIL announced that global investment company KKR will invest about 5,550 crores in Reliance Retail for 1.28 percent equity.
On Wednesday, Reliance Industries Limited and Reliance Retail Ventures Limited announced that global investment company KKR will invest about 5,550 crores in Reliance Retail, a Reliance Industries subsidiary. At a pre-money equity valuation of ⁇ 4.21 lakh crore, this investment values Reliance Retail. On a completely diluted basis, KKR ‘s investment would translate into a 1.28 percent equity interest in RRVL.
This is the second offer in two weeks by Reliance Retail. Private equity giant Silver Lake Partners said earlier this month that it will spend about 7,500 crores for a 1.75 percent stake in Reliance Retail.
This marks KKR ‘s second investment in a Reliance Industries subsidiary, following an Rs. 11,367 crore investment revealed earlier this year in Jio Platforms. Established in 1976, as of June 30, 2020, KKR has $222 billion in assets under control.
Reliance Retail estimates that, through its almost 12,000 stores worldwide, the business sees about 640 million footfalls.
“As we begin our onward march to expand and turn the Indian Retail ecosystem for the good of all Indians, I am pleased to welcome KKR as an investor in Reliance Retail Ventures. KKR has an established track record of being a valuable partner to leading franchises in the industry and for several years has been dedicated to India. We look forward to working through our digital services and retail businesses with KKR’s global platform, industry experience, and operational expertise, ”said Mukesh Ambani, Chairman and Managing Director of Reliance Industries.
Morgan Stanley acted as Reliance Retail’s financial advisor and Deloitte Touche Tohmatsu India LLP acted as KKR’s financial adviser for this contract.
Reliance Industries (RIL) shares advanced more than 2 percent in Wednesday’s trade after the company said global investment firm KKR will invest Rs 5,550 crore in its Reliance Retail Ventures (RRVL) subsidiary for a 1.28 percent equity stake.
At around 9.20 am (IST), the scrip traded 2.50 percent higher at Rs 2,266.75, while at around the same time, the benchmark BSE Sensex traded 0.85 percent up at 38,056.
Reliance Retail rates this investment at a pre-money equity valuation of Rs 4.21 lakh crore.
RRVL ‘s subsidiary Reliance Retail operates India’s biggest, fastest-growing, and most profitable retail company serving nearly 640 million footfalls through its nationwide 12,000 outlets.