Billionaire Mukesh Ambani-led Reliance Industries Limited (RIL) said late on Wednesday that the US private equity firm Silver Lake’s co-investors will be investing additional Rs 1,875 crore into Reliance Retail Ventures (RRVL), the retail arm of Reliance Industries. This brings the aggregate investment by Silver Lake and its co-investors in RRVL to Rs 9,375 crore, translating into 2.13 per cent equity stake in RRVL on a fully diluted basis.
This latest investment puts the valuation of Reliance Retail at Rs 4.2 lakh crore, Reliance Industries added.
Reliance Industries said the transaction is subject to regulatory and other customary approvals
Silver Lake had earlier invested Rs 7,500 crore to buy 1.75 per cent stake in Reliance Retail Ventures.
Earlier on Wednesday, another US-based private equity firm General Atlantic had announced an investment of Rs 3,675 crore for a 0.84 per cent stake in Reliance Retail.
This is the fourth major investment into Reliance Retail Ventures after Silver Lake’s Rs 7,500-crore investment for a 1.75 per cent stake, KKR’s Rs 5,550-crore investment for a 1.28 per cent stake and General Atlantic’s Rs 3,675-crore investment for 0.84 per cent stake.
The US-based Silver Lakel had earlier infused $1.35 billion in Reliance Industries’ digital services arm, Jio Platforms, becoming the first US private equity firm to invest in Jio Platforms after Facebook took a 9.99 per cent stake in the company in April.
Reliance Industries has been aggressively building its retail business as it looks to attract potential investors over the next few quarters.
Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said, “Silver Lake and its co-investors are valued partners on our journey to transform Indian Retail for the benefit of all Indians…Silver Lake’s additional investment is a strong endorsement of the tremendous potential of Indian Retail and the capabilities of Reliance Retail.”
Reliance Industries has attracted a series of investments this year, which have helped the group become net debt-free company much ahead of its goal of March, 2021.
Expanding its footprint into the country’s retail sector, Reliance Industries purchased the retail, wholesale, logistics and warehousing businesses of Future Group for Rs 24,713 crore last month.
In May, Reliance Industries launched JioMart, an online grocery service in a move aimed at rivalling Amazon’s local unit and Walmart’s Flipkart in the huge market.