Reliance Retail sells 1.28% equity stake for ₹5,550 crore to KKR1 min read . Updated: 23 Sep 2020, 08:30 AM IST
This investment values Reliance Retail at a pre-money equity value of ₹ 4.21 lakh crore
Reliance Industries Limited and Reliance Retail Ventures Limited announced on Wednesday that global investment firm KKR will invest ₹5,550 crore into Reliance Retail, a subsidiary of Reliance Industries. This investment values Reliance Retail at a pre-money equity value of ₹ 4.21 lakh crore. KKR’s investment will translate into a 1.28% equity stake in RRVL on a fully diluted basis.
This is the second deal by Reliance Retail in two weeks. Earlier this month, private equity giant Silver Lake Partners had said that it will invest ₹7,500 crore in Reliance Retail for a 1.75% stake.
This marks the second investment by KKR in a subsidiary of Reliance Industries, following a ₹ 11,367 crore investment in Jio Platforms announced earlier this year. Founded in 1976, KKR has $222 billion in assets under management as of June 30, 2020.
Reliance Retail claims that the company sees around 640 million footfalls across its nearly 12,000 stores nationwide.
“I am pleased to welcome KKR as an investor in Reliance Retail Ventures as we continue our onward march to growing and transforming the Indian Retail ecosystem for the benefit of all Indians. KKR has a proven track record of being a valuable partner to industry-leading franchises and has been committed to India for many years. We look forward to working with KKR’s global platform, industry knowledge and operational expertise across our digital services and retail businesses," said Mukesh Ambani, Chairman and Managing Director of Reliance Industries.
Morgan Stanley acted as financial advisor to Reliance Retail and Deloitte Touche Tohmatsu India LLP acted as financial advisor to KKR for this deal.