KKR Invests INR 5,550 Crore In Reliance Retail
The investment will value Reliance Retail at a pre-equity value of INR 4.21 lakh crore
US-based investment firm KKR & Co. will invest INR 5,550 crore in Mukesh Ambani-led Reliance Industries' retail subsidiary Reliance Retail Ventures Ltd (RRVL) for an exchange of 1.28 per cent stake.
The investment will value Reliance Retail at a pre-equity value of INR 4.21 lakh crore.
This is a second major investment in RRVL in weeks after American global technology investment firm Silver Lake invested INR 7,500 crore at an exchange for 1.75 per cent stake in RRVL on a diluted basis.
Morgan Stanley acted as financial advisor to Reliance and Deloitte Touche Tohmatsu India LLP acted as financial advisor to KKR for this deal.
Commenting on the latest development, Mukesh Ambani, chairman and managing director, Reliance Industries said, "I am pleased to welcome KKR as an investor in Reliance Retail Ventures as we continue our onward march to growing and transforming the Indian Retail ecosystem for the benefit of all Indians. 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."
Speaking on the investment, Henry Kravis, co-Founder and co-chief executive officer of KKR, said, "Reliance Retail's new commerce platform is filling an important need for both consumers and small businesses as more Indian consumers move to shopping online and the company offers tools for Kiranas to be a critical part of the value chain. We are thrilled to support Reliance Retail in its mission to become India's leading omnichannel retailer and ultimately to build a more inclusive Indian retail economy."
Earlier in the year, KKR was among several investors who have invested in Jio Platforms. KKR back then invested INR 11,367 crore in the Jio Platforms.
Currently, RRVL operates around 12,000 retail stores across the country and witnesses close to 640 million footfalls.