Silver Lake picks up 1.75% stake in Reliance Retail for Rs7,500 cr


New Delhi, September 9

US non-public fairness agency Silver Lake Partners will purchase 1.75% stake in billionaire Mukesh Ambani-run Reliance Industries Ltd’s retail arm for Rs 7,500 crore and could also be adopted by KKR & Co.

Silver Lake will make investments Rs 7,500 crore in Reliance Retail Ventures Ltd, a subsidiary of Reliance Industries, for a 1.75% stake, the Indian agency mentioned. “This investment values RRVL at a pre-money equity value of Rs 4.21 lakh crore,” it mentioned.

Second funding in RIL subsidiary

  • The funding values Reliance Retail Ventures Ltd — a subsidiary of Reliance Industries — at a pre-money fairness worth of Rs4.21 lakh crore
  • This marks the second billion-dollar funding by Silver Lake in a RIL subsidiary after the $1.35 billion funding in Jio Platforms introduced earlier this yr
  • Sources mentioned KKR could also be subsequent in line to make an funding of round $1.5 billion in Reliance Retail.

This marks the second billion-dollar funding by Silver Lake in a RIL subsidiary after the $1.35 billion funding in Jio Platforms introduced earlier this yr.

The world’s largest tech investor selecting up a stake in Reliance Retail cements perception that the agency is ready to guide a disruptive, technology-led transformation of the Indian retail sector notably related in post-pandemic India.

Reliance Retail Limited, a subsidiary of RRVL, operates India’s largest, fastest-growing and most worthwhile retail enterprise spanning supermarkets, client electronics chain shops, money and carry wholesale enterprise, fast-fashion shops, and on-line grocery retailer JioMart. It operates virtually 12,000 shops in practically 7,000 cities.

The funding will add fireplace to Ambani’s battle for dominance within the retail market that can also be being eyed by Jeff Bezos’ Amazon.com and Walmart Inc’s Flipkart.

In May, Reliance launched a web-based grocery supply service JioMart. It has tied up with WhatsApp to attach prospects with native kirana shops.

After monetising Jio Platforms — which homes the agency’s telecom arm and digital ventures — the richest Indian Mukesh Ambani is roping in buyers within the retail enterprise. — PTI



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