Reliance Industries Limited and Reliance Retail Ventures Limited announced on Wednesday that global investment company KKR will invest ₹5,550 crore into Reliance Retail, a subsidiary of Reliance Industries. This investment values Reliance Retail at a pre-money equity value of ₹ 4.21 lakh crore. KKR’s investment will translate into a 1.28% equity stake in RRVL on a totally diluted basis.
This is the second deal by Reliance Retail in fortnight . Earlier this month, private equity giant Silver Lake Partners had said that it’ll invest ₹7,500 crore in Reliance Retail for a 1.75% stake.
This marks the second investment by KKR during a subsidiary of Reliance Industries, following a ₹ 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 corporate sees around 640 million footfalls across its nearly 12,000 stores nationwide.
“I am pleased to welcome KKR as an investor in Reliance Retail Ventures as we continue our onward march to growing and reworking the Indian Retail ecosystem for the advantage of all Indians. KKR features a proven diary of being a valuable partner to industry-leading franchises and has been committed to India for several years. we glance forward to working with KKR’s global platform, industry knowledge and operational expertise across our digital services and retail businesses,” said Mukesh Ambani, Chairman and director 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.