Reliance Industries Ltd (RIL) has offered all 13 investors of Jio Platforms, including Facebook, Google, KKR and Silver Lake a chance to invest in its Reliance Retail Ventures Ltd, according to a report by Mint quoting two sources.
In all, Reliance received a total of Rs 1.5 lakh crore in investment from all 13 investors who garnered a 33% stake in Jio Platforms.
“Reliance Retail may follow the Jio Platforms model, onboarding multiple investors by selling stakes in the firm," a senior retail consultant, in the know, told the publication.
Strategic and financial investors can help the company fundraise for its retail business and decrease the amount of credit taken as foreign direct investment in multi-brand retailing is not allowed in India, yet.
“Reliance Retail cannot partner with a retailer for the deal due to FDI restrictions. So, it can only look for a financial or strategic investor like it did for Jio Platforms," Arvind Singhal, chairman at Technopak Advisors, told the publication.
According to RIL’s annual report, this year, Reliance's gross debt at the end of FY20 was at Rs Rs 3,36,000 crore. Reliance Industries's $7-billion fundraising in June was the country's largest, the data showed, as the company turned net debt-free and is now looking to expand its consumer business by acquiring Future Group's retail arm.
Private equity firm Silver Lake Partners is in talks to invest $1 billion in the retail arm of India's Reliance Industries Ltd, the Financial Times reported on Thursday, citing people with direct knowledge of the matter.
The investment, which would value Reliance Retail at about $57 billion, comes as the company is aiming to sell about 10% in new shares, the report added.
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