USPEbuys 1.28% stake in Rel Retail for ` 5,550cr
New Delhi, Sept. 23: US private equity firm KKR & Co will invest `5,550 crore to buy a 1.28 per cent stake in Reliance Industries Ltd’s retail arm as the Mukesh Ambani-run conglomerate extends fundraising spree that has already netted more than
$20 billion.
“KKR will invest `5,550 crore into Reliance Retail Ventures Ltd (RRVL), a subsidiary of Reliance Industries Ltd,” RIL said in a statement.
The investment values Reliance Retail, which runs grocery stores and fashion chains, at a premoney equity value of
`4.21 lakh crore. “KKR's investment will translate into a 1.28 per cent equity stake in RRVL on a fully diluted basis” it said. This is the second investment by KKR in Reliance Industries (RIL) units. It had previously
picked up a 2.32 per cent stake in the digital arm, Jio Platforms for `11,367 crore.
For Reliance Retail, KKR is the second investor. US private equity firm Silver Lake Partners had earlier this month agreed to buy 1.75 per cent stake in the venture for `7,500 crore.
Reliance Retail Limited, a subsidiary of RRVL, operates India’s largest, fastest-growing and most profitable retail business spanning supermarkets, consumer electronics chain stores, cash and carry wholesale business, fast-fashion outlets, and online grocery store JioMart. It operates almost 12,000 stores in nearly 7,000 towns.
The investment will add fire to Ambani’s battle for dominance in the retail market that is also being eyed by Jeff Bezos’ Amazon.com and Walmart Inc’s Flipkart.
In May, Reliance launched an online grocery delivery service JioMart. It has tied up with WhatsApp to connect customers with local kirana stores. Late last month, Reliance acquired the retail and logistics businesses of Future Group for `24,713 crore to boost its retail vertical.
Founded in 1976, KKR has $222 billion in assets under management as of June 30, 2020.