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Saturday, October 31, 2020

General Atlantic to buy 0.84% in Reliance Retail for Rs 3,675 crore

General Atlantic’s investment will translate into a 0.84 per cent equity stake in RRVL on a fully diluted basis.

By: ENS Economic Bureau | Mumbai | Updated: October 1, 2020 10:13:57 am
Signage for Reliance Digital Retail Ltd., a subsidiary of Reliance Industries Ltd., is displayed outside a company store in Mumbai, India, on Tuesday, July 14, 2020. (Photographer: Dhiraj Singh/Bloomberg)

Global growth equity firm General Atlantic has proposed to invest Rs 3,675 crore in Reliance Retail Ventures Ltd (RRVL), a subsidiary of Reliance Industries (RIL). The investment pegs Reliance Retail at a pre-money equity value of Rs 4.285 lakh crore.

Meanwhile, as per a PTI report, Silver Lake Partners will invest an additional Rs 1,875 crore in RRVL, RIL said in a statement on Wednesday. This brings the aggregate investment by Silver Lake and its co-investors in RRVL to Rs 9,375 crore, which will translate into a 2.13 per cent equity stake in RRVL. Earlier this month, the US-based Silver Lake said it will invest Rs 7,500 crore in RRVL.

General Atlantic’s investment will translate into a 0.84 per cent equity stake in RRVL on a fully diluted basis. This marks the second investment by General Atlantic in a subsidiary of RIL, following a Rs 6,598.38 crore investment in Jio Platforms announced this May.

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.

“General Atlantic has tremendous knowledge in the retail space developed by working with leading consumer and retail companies globally over the years and we hope to benefit from that as we progress on our journey,” said Isha Ambani, director, Reliance Retail.

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