Reliance Industries' Retail Arm To Get Rs 7,350 Crore Investment From GIC, TPG Capital

Reliance Industries forged a $3.38 billion deal in August to acquire rival Future Group’s retail business

Billionaire Mukesh Ambani-led oil-to-telecoms conglomerate Reliance Industries said on Saturday that Singapore’s sovereign wealth fund GIC and global private equity firm TPG Capital invested a combined Rs 7,350 crore (about $1 billion) in its retail unit.

Reliance Industries, controlled by Asia’s richest man Mr Ambani, has secured more than $2 billion in investments from global investors, including KKR & Co, Abu Dhabi state fund Mubadala and Silver Lake Partners, in Reliance Retail Ventures over the past few months.

GIC will invest Rs 5,512 crore for a 1.22 per cent stake, while TPG Capital Management will invest Rs 1,838 crore to own a 0.41 per cent equity stake in the retail arm, the company said.

The investments in Reliance Retail give the company a pre-money equity value of Rs 4.285 lakh crore ($58.47 billion), Reliance Industries said.

This is TPG Capital’s second investment in Reliance. In June, the firm invested $598 million in Reliance’s digital unit Jio Platforms.

Mumbai-headquartered Reliance Industries has approached investors in Jio Platforms about buying stakes in its retail arm, news agency Reuters had reported in September.

Reliance Industries, already India’s biggest retailer with roughly 12,000 stores, forged a $3.38 billion deal in August to acquire rival Future Group’s retail business.

The conglomerate is also expanding its so-called new commerce venture, which ties neighborhood stores to Reliance for online deliveries of groceries, apparel and electronics in a space currently dominated by Walmart Inc’s Flipkart and Amazon.com Inc’s Indian arm.

($1 = Rs 73.2900)


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