Global investment firm KKR & co. will invest Rs 5,550 crore in Reliance Industries's retail arm for a 1.28% stake, further boosting billionaire Mukesh Ambani's plans to garner funds for the consumer company.
This 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% equity stake in Reliance Retail Ventures Limited (RRVL) on a fully-diluted basis.
This is the second investment by KKR in a Reliance subsidiary, following a Rs 11,367 crore investment in Jio Platforms earlier this year. KKR's investment in May was part of a funding round that saw the conglomerate raise over $20 billion from investors including tech giants Facebook and Google.
Reliance had earlier raised Rs 7,500 crore from US private equity firm Silver Lake Partners for its retail business for a 1.75 per cent stake.
KKR's investment in RRVL will be made from its Asia private equity funds.
Morgan Stanley acted as Reliance Retail's financial adviser, while Deloitte Touche Tohmatsu India LLP was KKR's financial adviser.
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