New Delhi: Reliance Retail, a retail business company of Reliance Industries Limited (RIL), has signed a deal of Rs 6,247.50 crore with Abu Dhabi government fund Mubadala Investment Company. Under the deal, Mubadala has got 1.4% stake in Reliance Retail. The investment has been made at a pre-equity value of Rs 4.29 lakh crore. This investment in Reliance Retail is the fifth investment in the last three weeks. Earlier on Wednesday, RIL reported that a co-investor of private equity firm Silver Lake Partners would invest an additional Rs 1,875 crore in the retail unit. After this, the total investment in Reliance Retail Ventures Limited (RRVL) by Silver Lake and its co-investors reached Rs 9,375 crore.
Silver Lake’s stake in Reliance Retail 2.13% from new investment
Silver Lake’s total stake in RRVL has increased to 2.13 percent. According to the information given by Reliance in the Stock Exchange Filing, the pre-money equity value of Reliance Retail is around Rs 4.285 lakh crore. On this deal RIL chairman and managing director Mukesh Ambani said, “Silver Lake and its co-investors are valued partners for the Indian retail sector benefiting all Indians.” We are happy to have their trust and support.
Reliance Retail raised more than 19,000 crores in a few weeks
Reliance Retail has been successful in raising funds from foreign investors in a few weeks. The country’s largest retail business company has raised more than Rs 19,000 crore in a few weeks. The fund comes from private equity firm Silver Lake Partners and US firm KKR & Co. These two companies have bought 1.75 percent and 1.28 percent stake in Reliance Retail respectively. On 30 September itself, the private equity firm General Atlantic said that it would invest Rs 3,675 crore for a 0.84 percent stake in Reliance Retail.
Morgan Stanley plays Financial Advisor in the deal
On the investment of Silver Lake, the company’s CO-CEO Egon Durban said, “We are happy to increase our stake and bring our co-investors together for this tremendous opportunity.” With the continuous investment in the last few weeks, it is clear what is the vision and business model of Reliance Retail. This company underscores the tremendous potential under its new and transformative commerce initiative. Morgan Stanley played the role of Financial Advisor for Reliance Retail. Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal counsel.
