Reliance Industries said in a regulatory filing that the investment by GIC and TPG will result in a 1.22% equity interest and 0.41% equity interest in RRVL, respectively, on a fully diluted basis.
Reliance Industries Limited (Reliance Industries) and Reliance Retail Ventures Limited (RRVL) announced today that GIC will invest ₹ 5,512.5 crore in
RRVL, a subsidiary of Reliance Industries. This investment values RRVL at a pre-money equity value of ₹ 4,285 million lakh rupees. GIC’s investment will result in a 1.22% equity interest in RRVL on a fully diluted basis.
Mukesh Ambani, President and CEO of Reliance Industries, said: “It is a great pleasure for me to welcome GIC to the Reliance Retail family. I am delighted that GIC, with its nearly four decade track record of successful long-term value investments around the world, is partnering with Reliance Retail on its mission to transform the Indian retail landscape. GIC’s global network and history of long-term partnerships will be invaluable to Indian Retail’s transformation story. This investment is a strong endorsement of our strategy and the potential of India.
Lim Chow Kiat, CEO of GIC, said: “GIC is pleased to partner with Reliance through this new investment, which will enable the company to position Reliance Retail for strong secular growth in the Indian retail market. We believe that Reliance Retail will continue to use its extensive supply chain and store networks, as well as a robust data and logistics infrastructure, to add value to its customers and shareholders. “
Reliance Industries Limited and RelianceRetail Ventures Limited (RRVL) announced today that global investment firm TPG will invest ₹ 1,837.5 crore at RRVL, a subsidiary of Reliance Industries. This investment values
It will be TPG’s second investment in a Reliance Industries subsidiary, following a ₹ Rs 4,546.8 million investment in Jio Platforms announced earlier this year.
Reliance Retail Limited, a subsidiary of RRVL, operates the largest, fastest growing and most profitable retail business in India, serving nearly 640 million visitors in its ~ 12,000 stores across the country. Reliance Retail’s vision is to empower India’s retail sector through an inclusive strategy serving millions of customers by empowering millions of farmers and micro, small and medium-sized enterprises (MSMEs) and working closely with national companies and international partners as a preferred partner, to offer huge benefits. to Indian society, while protecting and creating employment for millions of Indians. Reliance Retail, through its New Commerce strategy, has initiated a transformative digitization of small and unorganized merchants and is committed to expanding the network to more than 20 million such merchants. This will allow merchants to use technology tools and an efficient supply chain infrastructure to deliver a superior value proposition to their own customers.
TPG is a leading global alternative assets firm founded in 1992 with more than $ 83 billion of assets under management across a wide range of asset classes, including private equity, growth equity, real estate, and public equity. Throughout TPG’s nearly 30-year history, the firm has built an ecosystem comprised of hundreds of portfolio companies and a value-added network of professionals, executives and advisors around the world. By offering institutional support and global resources, TPG enables these companies to reach their full potential and unlock greater possibilities.
TPG is making the investment from its TPG Capital Asia fund.
Mukesh Ambani, President and CEO of Reliance Industries, said: “I am pleased to welcome TPG as a valued investor in Reliance Retail Ventures mission to grow and transform the Indian retail ecosystem for the benefit of all Indians. TPG has a proven track record of being a valued partner to global technology companies and industry leaders and we look forward to your guidance and support on our journey. “
The transaction is subject to customary and regulatory approvals.
Morgan Stanley acted as financial advisor to Reliance Retail and Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal advisors. Deloitte Touche Tohmatsu India LLP acted as financial advisor to TPG and Shardul Amarchand Mangaldas & Co. acted as legal advisor to TPG.
Jim Coulter, Co-CEO, TPG, said: “Regulatory changes, consumer demographics and technology disruption are creating seismic shifts throughout the retail value chain in India. In the midst of this transformation, Reliance Industries has used technology and scale to position Reliance Retail as an incredibly strong, well-organized and innovative leader. We are excited to join them in their quest to create a more inclusive retail industry that enables Kiranas and Indian consumers to benefit from the connectivity, efficiency and accessibility of the Reliance Retail omnichannel platform. “
Isha Ambani, Director of Reliance Retail, said: “We are delighted to welcome TPG to the Reliance Retail family on our journey to revolutionize the Indian retail landscape and improve the economic outlook for millions of merchants and enhance the consumer experience. TPG’s rich experience will be invaluable to the mission of Reliance Retail. “
Puneet Bhatia, TPG Capital Asia Co-Managing Partner and Country Head, India, said: “There is a significant opportunity to transform the Indian retail ecosystem for the better. Through its New Commerce initiative, Reliance Retail continues to lead the industry by creating a retail platform that meets the demands of a new generation of Indian consumers. We are excited to be working with Reliance Industries as they reinvent the retail experience across the value chain. “
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