New Delhi: In yet another major boost to Reliance Retail, a subsidiary of Reliance Industries, a global firm KKR will invest Rs 5,550 crore, which values the entity at a pre-money equity value of Rs 4.21 lakh crore. The investment was announced by the retail firm on Wednesday. The investment will translate into a 1.28% equity stake in RRVL on a fully diluted basis. ALSO READ | Facebook India Moves SC Against Notice Issued By Delhi Assembly Over Role In Feb Riots; Hearing Today
“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,” said Mukesh Ambani, Chairman and Managing Director of Reliance Industries.
In a span of two weeks, Reliance Retail garnered investment from two entities. Earlier, the home grown retail firm had announced investment to the tune of Rs 7,500 crore from private equity giant Silver Lake Partners for a 1.75 per cent stake.
The recent announcement comes as the second investment by KKR in a subsidiary of Reliance Industries, following a Rs 11,367 crore investment in Jio Platforms announced earlier this year.
As per Reliance Retail, the company sees around 640 million footfalls across its nearly 12,000 stores nationwide.
Founded in 1976, KKR has successfully investing in businesses in the technology sector, including BMC Software, ByteDance and GoJek through its private equity and technology growth funds.
Since inception, the firm has invested over $30 billion (total enterprise value) in tech companies, and today the firm’s technology portfolio has more than 20 companies across the technology, media and telecom sectors. In addition, India has been a key strategic market for KKR with a history of investing in the country since 2006.
Morgan Stanley acted as financial advisor to Reliance Retail and Deloitte Touche Tohmatsu India LLP acted as financial advisor to KKR for this deal.