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Sunday, September 27, 2020

Reliance Industries shares gain 1.5 per cent as Silver Lake picks stake in Reliance Retail

The Reliance Industries (RIL) stock jumped 1.52 per cent to Rs 2,139.10 on the BSE. At the NSE, it rose by 1.50 per cent to Rs 2,138.75.

By: PTI | New Delhi | Updated: September 9, 2020 11:19:34 am
Reliance Industries' (RIL) retail-arm Reliance Retail Ventures Limited (RRVL) will acquire the retail & wholesale business and the logistics & warehousing business of Future Group on a slump sale basis for lumpsum aggregate consideration of Rs 24,713 crore.

Shares of Reliance Industries gained 1.5 per cent in early trade on the bourses after US private equity firm Silver Lake Partners picked up 1.75 per cent stake in the retail arm of the company for Rs 7,500 crore.

The stock jumped 1.52 per cent to Rs 2,139.10 on the BSE.

At the NSE, it rose by 1.50 per cent to Rs 2,138.75.

“Reliance Industries Limited and Reliance Retail Ventures Ltd (RRVL) announced today that Silver Lake will invest Rs 7,500 crore into RRVL, a subsidiary of Reliance Industries,” the statement said.

This investment values 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 marks the second billion-dollar investment by Silver Lake in a Reliance Industries subsidiary after the USD 1.35 billion investment in Jio Platforms announced earlier this year.

“Reliance Retail Limited, a subsidiary of RRVL, operates India’s largest, fastest growing and most profitable retail business serving close to 640 million footfalls across its about 12,000 stores nationwide,” the statement said.

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