Billionaire Mukesh Ambani’s Reliance Industries Ltd on Friday announced to raise Rs 7,350 crore from two investors — Singapore’s sovereign wealth fund GIC and Global alternative asset firm TPG — by selling a stake in group’s retail arm.
Through two separate deals, Reliance Industries will sell 1.63 per cent stake in Reliance Retail Ventures Limited (RRVL). GIC will invest Rs 5,512.5 crore to buy 1.22 per cent share in RRVL, the Indian firm said in a statement. It said TPG will invest Rs 1,837.5 crore to buy 0.41 per cent stake in RRVL. The investments value Reliance Retail at a pre-money equity value of Rs 4.285 lakh crore. In less than three days, Reliance Industries has entered into five deals to sell stake in RRVL.
Earlier, On Thursday, RIL had announced Abu Dhabi-based sovereign wealth fund Mubadala Investment Co will invest Rs 6,247.5 crore to buy a 1.4 per cent stake in its retail arm.
On Wednesday, global private equity firm General Atlantic picked up a 0.84 per cent stake in the company for Rs 3,675 crore. Also, US PE investor Silver Lake made a second investment of Rs 1,875 crore, taking its total fund infusion in Reliance Retail to Rs 9,375 crore for a 2.13 per cent stake. KKR had previously taken a 1.28 per cent stake in the firm for Rs 5,550 crore.
Commenting on the development Mukesh Ambani, chairman and managing director of Reliance Industries, said: I am delighted that GIC, with its track record of close to four decades of successful long-term value investing across the world, is partnering with Reliance Retail in its mission to transform the Indian retail landscape. GIC’s global network and track record of long-term partnerships will be invaluable to the transformation story of Indian Retail.
This investment is a strong endorsement of our strategy and India’s potential, he said.
GIC Chief Executive Officer Lim Chow Kiat said: GIC is pleased to partner with Reliance through this new investment, which will enable the company to position Reliance Retail for the strong secular growth in India’s retail market.
The transactions are subject to regulatory and other customary approvals.
While, TPG Co-CEO Jim Coulter said: Regulatory changes, consumer demographics and technological disruption are creating seismic shifts across the entire retail value chain in India. In the midst of this transformation, Reli ance Industries has utilised technology and scale to position Reli ance Retail as an incredibly strong, well-organised, and innovative leader.