“KKR Invests Rs 2,069.50 Crore in Reliance Retail, Boosting Stake to 1.42%”
Reliance Retail Ventures Limited (RRVL), a subsidiary of the conglomerate Reliance Industries, is set to receive a fresh infusion of Rs 2,069.50 crore from global investment firm KKR, increasing KKR’s stake in the company to 1.42%. This move values RRVL at a pre-money equity value of Rs 8.361 lakh crore, positioning it among the top four companies in India by equity value.
Reliance Retail Ventures Limited (RRVL), a subsidiary of the conglomerate Reliance Industries, is set to receive a fresh infusion of Rs 2,069.50 crore from global investment firm KKR, increasing KKR’s stake in the company to 1.42%. This move values RRVL at a pre-money equity value of Rs 8.361 lakh crore, positioning it among the top four companies in India by equity value.
According to the announcement, KKR’s follow-on investment will result in an additional equity stake of 0.25% in RRVL on a fully-diluted basis. When combined with KKR’s previous investment of Rs 5,550 crore in RRVL in 2020, this will bring KKR’s total equity stake in RRVL to 1.42% on a fully-diluted basis. RRVL had previously raised Rs 47,265 crore from various global investors in 2020 at a pre-money equity value of Rs 4.21 lakh crore.
The source of KKR’s investment primarily stems from its Asian Fund IV. However, the transaction is subject to regulatory and customary approvals, as highlighted by Reliance Retail.
RRVL, a key player in India’s retail sector, operates the nation’s largest and most profitable retail business, serving over 26.7 crore customers through 18,500 stores and digital commerce platforms across various categories, including grocery, consumer electronics, fashion & lifestyle, and pharmaceuticals.
Isha Mukesh Ambani, Director of Reliance Retail Ventures Limited, expressed anticipation about the continued partnership with KKR, stating, “We look forward to continued engagement with KKR and to benefit from their global platform, industry knowledge, and operational expertise, in our journey towards driving transformation of the Indian retail sector.”
Joe Bae, Co-CEO of KKR, also shared his perspective on the investment, saying, “Throughout our investment period in Reliance Retail, we have been impressed by the company’s vision and extensive work to empower retailers across India through digitalization, as well as by its resilience and performance in spite of the pandemic and other disruptions.”
Gaurav Trehan, Head of Asia Pacific Private Equity and Head of India at KKR, praised Reliance Retail as a leader and innovator in India’s corporate landscape, emphasizing the potential for the company to digitize and transform the nation’s retail industry.
Morgan Stanley acted as the financial advisor to Reliance Retail Ventures Limited, with Cyril Amarchand Mangaldas and Davis Polk & Wardwell serving as legal counsels for the transaction.
KKR, founded in 1976, manages approximately $519 billion in assets as of June 30, 2023. The investment firm has developed a strong relationship with Reliance Industries Limited and is also an investor in Jio Platforms Limited, the telecom platform of Reliance Industries.
This investment signifies a strategic move in the Indian retail sector, highlighting Reliance Retail’s growth trajectory and its ability to attract significant investments from global players like KKR.
Sources By Agencies
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