Reliance offers retail stake to Jio investors

MUMBAI: Reliance Industries Ltd (RIL) has offered all 13 financial and strategic investors of Jio Platforms the option to invest in its Reliance Retail Ventures Ltd (RRVL) unit, two people aware of the developments said.

These investors comprise Facebook, Google, KKR, Silver Lake and TPG among others. They helped RIL amass a total of ₹1.52 lakh crore in the past few months by picking up a combined 33% stake in its digital unit, Jio Platforms.

With FDI in multi-brand retailing barred in India, strategic and financial investors can help RIL raise funds to grow its retail business and also support efforts to trim debt. RRVL can also tap technology giants such as Facebook and Google to catapult its retail business and take last month said that Reliance Retail will induct global partners and investors into the company in the next few quarters.

According to RIL’s annual report, the company’s gross debt at the end of the last fiscal stood at ₹3.36 lakh crore. This included ₹4,618 crore of Reliance Retail. Responding to emailed queries, a spokesperson for Reliance Retail Ltd said, “As a policy, we do not comment on media speculation and rumours.”

“Our company evaluates various opportunities on an ongoing basis,” the spokesperson said, adding that the company will make disclosures, whenever necessary, in compliance with its listing obligations.

On Thursday, the Financial Times reported that PE firm Silver Lake is in talks to invest $1 billion in Reliance Retail for a 10% stake at an enterprise valuation of $57 billion.