Reliance Retail to receive Rs. 7,350 cr investment from GIC, TPG Capital
GIC will invest Rs. 5,512 crore for a 1.22 percent stake, while TPG Capital Management will invest Rs. 1,838 crore to own a 0.41 percent equity stake in the retail arm, the company said.
New Delhi: Oil-to-telecoms conglomerate Reliance Industries said on Saturday Singapore sovereign wealth fund GIC and global private equity firm TPG Capital invested a combined Rs. 7,350 crore in its retail unit
GIC will invest Rs. 5,512 crore for a 1.22 percent stake, while TPG Capital Management will invest Rs. 1,838 crore to own a 0.41 percent equity stake in the retail arm, the company said. The investments in Reliance Retail values the company at a pre-money equity value of Rs. 4,285 lakh crore, Reliance said.
Commenting on the investment by TPG, Mukesh Ambani, Chairman and Managing Director, Reliance Industries, said, “I am pleased to welcome TPG as valued investors in Reliance Retail Ventures mission of growing and transforming the Indian Retail ecosystem for the benefit of all Indians. TPG has a proven track record of being a valuable partner to global technology businesses and industry leaders and we look forward to their guidance and support in our journey.”
The investment by GIC values RRVL at a pre-money equity value of Rs 4.285 lakh crore and it will translate into a 1.22 percent equity stake in RRVL on a fully diluted basis.
Commenting on the investment by GIC, Mukesh Ambani, Chairman and Managing Director, Reliance Industries, said, “It gives me great pleasure to welcome GIC to the Reliance Retail family. I am delighted that GIC, with its track record of close to four decades of successful long-term value investing across the world, is partnering with Reliance Retail in its mission to transform the Indian retail landscape.”
Mumbai-headquartered Reliance has approached investors in Jio Platforms about buying stakes in its retail arm, Reuters had reported in September.
Reliance, already India’s biggest retailer with roughly 12,000 stores, forged a $3.38 billion (roughly Rs. 24.783 crores) deal in August to acquire rival Future Group’s retail business.