Global investment firm KKR is all set to invest Rs 5,550 crore in Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries (RIL).
According to a press release issued by Reliance on Wednesday, KKR’s fresh investment values Reliance Retail at a pre-money equity value of Rs 4.21 lakh crore.
KKR’s investment will translate into a 1.28 per cent equity stake in RRVL on a fully diluted basis. It may be noted that this is KKR’s second investment in a RIL subsidiary. It had invested Rs 11,367 crore in Reliance’s digital venture, Jio Platforms, earlier this year.
The deal comes at a time when Reliance is trying to strengthen its retail venture in India and take on major e-commerce giants in India like Amazon.
Also Read | Silver Lake to invest Rs 7,500 crore in Reliance Retail
Commenting on the investment by KKR, RIL Chairman and Managing Director Mukesh Ambani 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.”
Morgan Stanley acted as financial advisor to Reliance Retail and Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal counsels.
Deloitte Touche Tohmatsu India LLP acted as financial advisor to KKR. Shardul Amarchand Mangaldas & Co. and Simpson Thacher & Bartlett LLP acted as legal counsel to KKR.
This is the second investment by a company in Reliance Retail this month. Earlier in September, American private equity firm Silver Lake invested Rs 7,500 crore in Reliance Retail for 1.75 per cent equity stake.