September 10, 2020 3:05:28 am
Global technology investment firm Silver Lake has decided to invest Rs 7,500 crore ($ 1 billion) in Reliance Retail Ventures Ltd (RRVL), the retail arm of Reliance Industries Ltd, valuing RRVL at a pre-money equity value of Rs 4.21 lakh crore. Silver Lake’s investment will translate into a 1.75 per cent equity stake in RRVL on a fully diluted basis.
This is the second billion dollar investment by Silver Lake in a Reliance Industries subsidiary after the $1.35 billion investment in Jio Platforms announced earlier this year. Reliance Retail Ltd, a subsidiary of RRVL, operates India’s largest retail business serving close to 640 million footfalls across its 12,000 stores nationwide.
Mukesh Ambani, chairman and managing director, Reliance Industries, said, “We believe technology will be key to bringing much-needed transformation in this sector so that various constituents of the retail ecosystem can collaborate to build inclusive growth platforms. Silver Lake will be an invaluable partner in implementing our vision for Indian retail.” “Reliance Retail, through its new commerce strategy, has started a transformational digitalization of small and unorganised merchants and is committed to expanding the network to over 20 million of these merchants, helping them benefit from the use of technology tools and efficient supply chain infrastructure to deliver a superior value proposition to their own customers,” RIL said in a statement.
The transaction is subject to regulatory and other customary approvals.
RRVL reported a consolidated turnover of Rs 1,62,936 crore ($21.7 billion) and net profit of Rs 5,448 crore ($726.4 million) for the year ended March 31, 2020.
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