Oil-to-telecom behemoth Reliance Industries (RIL) on Wednesday announced that US-based private equity firm General Atlantic will invest Rs 3,675 crore in its retail arm Reliance Retail (RRVL) for a 0.84 per cent stake. The latest investment values RRVL at a pre-money equity value of Rs 4.285 lakh crore, the company said in a statement.
This is the third stake deal done by the RIL subsidiary this month after Silver Lake and KKR. This is also General Atlantic’s second investment in a RIL subsidiary. The private equity firm had earlier invested Rs 6,598.38 crore in Jio Platforms earlier this year.
With the third investment this month, the country’s largest retail chain RRVL has now raised a total of Rs 16,725 crore so far by selling 3.87 per cent stake. Out of this, Silver Lake has picked up 1.75 per cent for Rs 7,500 crore, while KKR has taken 1.28 per cent for Rs 5,550 crore.
Commenting on the deal with General Atlantic, RIL Chairman and Managing Director Mukesh Ambani in the statement said, “I am pleased to extend our relationship with General Atlantic as we work towards empowering both merchants and consumers alike, and ultimately transforming Indian Retail.”
The transaction is subject to regulatory and other customary approvals, the statement said.
Morgan Stanley acted as financial advisor to Reliance Retail and Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal counsels. Shardul Amarchand Mangaldas & Co and Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as legal counsel to General Atlantic, it added.
Commenting on the investment, Bill Ford, Chief Executive Officer of General Atlantic, said, “General Atlantic is thrilled to be backing Mukesh’s New Commerce mission to drive substantial positive change in the country’s retail sector, which goes hand-in-hand with his vision to enable a Digital India through the work of Jio Platforms.”
Reacting to the latest development, the shares of RIL had climbed 1.01 per cent to Rs 2267.55 on the BSE in the early trade on Wednesday.
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