KKR picks up 1.28% stake in Reliance Retail for Rs 5,550 cr


New Delhi, September 23

US private equity firm KKR & Co will invest Rs 5,550 crore to buy a 1.28% stake in Reliance Industries Ltd’s retail arm as the Mukesh Ambani-run conglomerate extends fundraising spree that has already netted more than $20 billion.

“KKR will invest Rs 5,550 crore into Reliance Retail Ventures Ltd (RRVL), a subsidiary of Reliance Industries Ltd,” the Indian firm said.

The investment values Reliance Retail, which runs grocery stores and fashion chains, at a pre-money equity value of Rs 4.21 lakh crore.

“KKR’s investment will translate into a 1.28% equity stake in RRVL on a fully diluted basis,” it said.

This is the second investment by KKR in Reliance Industries (RIL) units. It had previously picked up a 2.32% stake in the digital arm, Jio Platforms for Rs 11,367 crore.

For Reliance Retail, KKR is the second investor. US private equity firm Silver Lake Partners had earlier this month agreed to buy 1.75% stake in the venture for Rs 7,500 crore.

Reliance Retail Limited, a subsidiary of RRVL, operates India’s largest, fastest-growing and most profitable retail business spanning supermarkets, consumer electronics chain stores, cash and carry wholesale business, fast-fashion outlets, and online grocery store JioMart. It operates almost 12,000 stores in nearly 7,000 towns.

The investment will add fire to Ambani’s battle for dominance in the retail market that is also being eyed by Jeff Bezos’ Amazon.com and Walmart Inc’s Flipkart.

In May, Reliance launched an online grocery delivery service JioMart. It has tied up with WhatsApp to connect customers with local kirana stores.

Late last month, Reliance acquired the retail and logistics businesses of Future Group for Rs 24,713 crore to boost its retail vertical.

Mukesh Ambani, Chairman and Managing Director of RIL, said, “KKR has a proven track record of being a valuable partner to industry-leading franchises and has been committed to India for many years. We look forward to working with KKR’s global platform, industry knowledge and operational expertise across our digital services and retail businesses.” — PTI

SECOND INVESTMENT IN RIL SUBSIDIARY

  • The investment values Reliance Retail, which runs grocery stores and fashion chains, at a pre-money equity value of Rs4.21 lakh crore
  • This is the second investment by KKR in Reliance Industries (RIL) units. It had previously picked up a 2.32% stake in the digital arm, Jio Platforms for Rs11,367 crore
  • Reliance Retail has 12,000 stores in nearly 7,000 towns



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