New Delhi: Co-investors of US private equity firm Silver Lake will invest more ₹Rs 1,875 crore at Reliance Retail Ventures (RRVL), the retail arm of Reliance Industries, the firm said in a regulatory filing Wednesday night.
This brings the aggregate investment of Silver Lake and its co-investors in RRVL to ₹ Rs 9,375 crore, which will translate into a 2.13% equity stake in RRVL on a fully diluted basis. This latest investment places Reliance Retail’s valuation at ₹ Rs 4.2 million lakh.
Reliance Retail Limited, a subsidiary of RRVL, says it serves about 640 million visitors at its 12,000 stores nationwide.
Silver Lake, whose portfolio includes stakes in Airbnb and Twitter Inc, has previously invested in Reliance’s digital business.
This is check number four for Reliance Retail after Silver Lake ₹Rs 7.5 billion investment for 1.75% stake, KKR’s ₹Rs 5,550 crore investment for 1.28% stake and General Atlantic ₹Rs 3,675 million investment for a 0.84% stake.
Commenting on the aggregate investment contributed by Silver Lake, Mukesh Ambani, President and CEO of Reliance Industries, said: “Silver Lake and its co-investors are valuable partners in our journey to transform Indian Retail for the benefit of all Indians. We are pleased to have your trust and support, as well as the benefit of your leadership in global technology investment and your valuable network of relationships for the retail revolution in India. Silver Lake’s additional investment is a strong endorsement of the tremendous potential of Indian Retail and the capabilities of Reliance Retail. “
Egon Durban, Co-CEO and Managing Partner of Silver Lake, said: “We are delighted to increase our exposure and attract more co-investors to this unparalleled opportunity. The continued investment momentum over the past few weeks is testament to Reliance Retail’s compelling vision and business model, and underscores the tremendous potential of the transformative New Trade initiative. “
Morgan Stanley acted as financial advisor to Reliance Retail and Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal advisors. Latham & Watkins and Shardul Amarchand Mangaldas & Co acted as legal advisers to Silver Lake.
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