Reliance Industries, led by billionaire Mukesh Ambani, said on Wednesday that the US-based General Atlantic will invest 3,675 crore for a 0.84 percent stake in its retail arm, Reliance Retail Ventures. The deal gives Reliance Retail a pre-money valuation of Rs 4.29 lakh crore, Reliance Industries said in a regulatory filing before market hours. The General Atlantic deal is the latest in a series of investments in Reliance Industries group companies and is likely to strengthen the retail presence of the oil-to-telecommunications conglomerate in the domestic market.
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Shares in Reliance Industries rose 1 percent after the announcement. At 10:42 a.m. M., The shares were trading 0.65% higher at Rs 2,259.45 each on the BSE, outperforming the benchmark Sensex, which was up 0.37%.
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The latest transaction, subject to regulatory and other customary approvals, comes at a time when global investors, including internet giants Facebook and Google, are optimistic about Reliance Industries’ business.
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“I am pleased to extend our relationship with General Atlantic as we work to empower both merchants and consumers and ultimately transform Indian retail,” said Mukesh Ambani, President and CEO of Reliance Industries.
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The deal marks General Atlantic’s second investment in a Reliance Industries group company, following a capital injection of Rs 6,598.38 crore into Reliance Industries’ digital services unit, Jio Platforms.
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“Like Reliance Retail, General Atlantic believes in the fundamental ability of digital enablement to drive progress, growth and inclusion in India and the world,” Ambani added.
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Reliance Industries has attracted a number of investments this year, which have helped the group become a net debt-free company long before its March 2021 target.
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Recently, US-based private equity firms KKR and Silver Lake had purchased stakes in Reliance Retail Ventures, which is a subsidiary of Reliance Industries and the holding company of all of the conglomerate’s retail companies.
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The group has been aggressively expanding its presence in the national retail sector as it seeks to attract potential investors over the next few quarters.
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In August, RIL purchased Future Group’s retail, wholesale, logistics and warehousing businesses for Rs 24,713 crore.
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That deal followed the launch of JioMart, an online grocery service, in May, in a move meant to rival Amazon’s local unit and Walmart’s Flipkart in the huge market.
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