Reliance Industries Limited and Reliance Retail Ventures Limited announced Wednesday that global investment firm KKR will invest ₹5,550 crore at Reliance Retail, a subsidiary of Reliance Industries. This investment values Reliance Retail at a pre-money equity value of ₹ 4.21 million lakh rupees. KKR’s investment will result in a 1.28% equity interest in RRVL on a fully diluted basis.
This is Reliance Retail’s second deal in two weeks. Earlier this month, private equity giant Silver Lake Partners had said it will invest ₹7,500 crore in Reliance Retail for a 1.75% stake.
This marks KKR’s second investment in a Reliance Industries subsidiary, following a ₹ Rs 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 about 640 million footfalls in its nearly 12,000 stores nationwide.
“I am pleased to welcome KKR as an investor in Reliance Retail Ventures as we continue our march towards growth and transformation of the Indian retail ecosystem for the benefit of all Indians. KKR has a proven track record of being a valued partner for leading franchises in the industry and has been engaged in India for many years. We look forward to working with KKR’s global platform, industry knowledge and operational experience in our digital services and retail businesses, “said Mukesh Ambani, President and CEO 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.
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