Reliance Retail Arm To Get $250 Mln More Investment From KKR

Reliance Industries Ltd.’s subsidiary Reliance Retail Ventures Ltd. (RRVL) said private equity firm KKR will invest an additional 2,069.50 crore rupees ($250 million) in the company to acquire a 0.25% stake.

The latest investment by KKR, through an affiliate, will boost its total stake in the company to 1.42% from 1.17%, the Indian retailer said in a statement. The global investment firm, whose investment comes primarily from its Asian Fund IV, had invested 5,550 crore rupees in RRVL in 2020.

RRVL said the latest investment values the company at a pre-money equity value of 8.361 lakh crore rupees, which makes it among the top four companies by equity value in the country.

“We look forward to continued engagement with KKR and to benefit from their global platform, industry knowledge and operational expertise, in our journey towards driving transformation of the Indian retail sector,” RRVL Director Isha Mukesh Ambani said.

RRVL, through its subsidiaries and affiliates, operates an integrated omni-channel network of over 18,500 stores and digital commerce platforms across grocery, consumer electronics, fashion & lifestyle and pharma consumption baskets.

Morgan Stanley acted as financial advisor to RRVL, while Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal counsels.

The transaction is subject to regulatory and other customary approvals.

The latest development comes after Qatar’s sovereign wealth fund’s recent move to invest 8,278 crore rupees in RRVL to acquire a 1% stake in the company.

Note: $1 = 82.9373 Indian rupees

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