TPG Invests INR 1,837.5 Cr In Reliance Retail For 0.41% Stake
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American private equity (PE) firm TPG will invest INR 1,837.5 crore in Reliance Industry Limited’s (RIL’s) retail subsidiary Reliance Retail Ventures Limited (RRVL).
TPG will pick a 0.41 per cent equity stake in RRVL on a diluted basis in return of the investment. This deal values Reliance Retail at a pre-money equity value of INR 4.285 lakh crore.
This investment comes only a few hours after Singapore sovereign wealth fund GIC invested INR 5,512.5 crore in RRVL for an exchange of 1.22 per cent equity stake in the company. In the past one week alone, this is the fifth investment in the oil-to-telecom conglomerate’s retail arm from a global investor.
Abu Dhabi based sovereign investor Mubadala, PE firm Silver Lake and its co-investors, growth equity firm General Atlantic, global investment firm KKR, GIC along with the latest fund TPG have pumped a total of INR 32,200 crore in RRVL in the last one month.
Commenting on the latest capital infusion, Mukesh Ambani, chairman and managing director of 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.”
This marks the second investment from TPG in the RIL group following a INR 4,546.8 crore investment in Jio Platforms earlier this year.
“Regulatory changes, consumer demographics and technological disruption are creating seismic shifts across the entire retail value chain in India. In the midst of this transformation, Reliance Industries has utilized technology and scaleto position Reliance Retail as an incredibly strong, well-organized, and innovative leader. We are excited to join with them as they seek to create a more inclusive retail industry that allows Kiranas and Indian consumers to benefit from the connectivity, efficiency, and accessibility of the Reliance Retail omnichannel platform,” said Jim Coulter, Co-CEO, TPG.
Reliance Retail is currently serving close to 640 million footfalls across its 12,000 stores across the country.
Morgan Stanley acted as financial advisor to Reliance Retail and Cyril Amarchand Mangaldasand Davis Polk & Wardwell acted as legal counsels.Deloitte Touche Tohmatsu India LLP acted as financial advisor to TPG and Shardul Amarchand Mangaldas & Co. acted as legal counsel to TPG