Reliance Retail sells 1.28% equity stake for ₹5,550 crore to KKR

Marco Green
September 23, 2020

"We are pleased to deepen our relationship with Reliance Industries through this investment in Reliance Retail Ventures, which is empowering merchants of all sizes and fundamentally changing the retail experience for Indian consumers".

USA private equity firm KKR & Co Inc will invest 55.50 billion rupees ($755.09 million) in Reliance Industries Ltd's retail arm, giving the unit a pre-money valuation of 4.21 trillion rupees, the Indian conglomerate said on Wednesday.

This is the second such deal in the retail-arm of RIL in as many weeks. This also marks another investment by KKR in an RIL subsidiary in 2020 alone - KKR pumped in Rs 11,367 crore in RIL subsidiary Jio Platforms Ltd earlier this year. Currently, the firm has approximately $5.1 billion in private equity investments across more than 15 Indian companies, including Jio Platforms, JB Chemicals, Max Healthcare, Eurokids International and Ramky Enviro Engineers.

Reliance, which has been on a fund-raising spree, had earlier raised $1.02 billion from US private equity firm Silver Lake Partners for its retail business.

Morgan Stanley was the financial advisor to Reliance Retail and Cyril Amarchand Mangaldas and Davis Polk & Wardwell were legal counsels. Shardul Amarchand Mangaldas & Co and Simpson Thacher & Bartlett LLP acted as legal counsel to KKR.

Following this latest news update, the shares of RIL had climbed 2.96 per cent to Rs 2,276.50 apiece on the BSE in early trade on Wednesday, while on the National Stock Exchange (NSE), they rose 2.97 per cent to Rs 2,276.75 per share. American PE firm KKR is set to invest ₹5,550 crore in Mukesh Ambani's Reliance Retail. "We look forward to working with KKR's global platform, industry knowledge and operational expertise across our digital services and retail businesses", said Mukesh Ambani, Chairman and Managing Director, Reliance Industries.

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