The retail arm of the Reliance Industries Limited's (RIL) has raised Rs 32,197.50 crore in exchange of 7.28 per cent consolidated stakes spread across seven mega deals in less than a month. The Reliance Retail Venture Ltd (RRVL) received investment from half a dozen global firms including Silver Lake, KKR, General Atlantic, Mubadala.
On September 9, Silver Lake announced an investment of Rs 7,500 for 1.75 per cent equity stake. On September 23, the RIL announced Rs 5,550 crore investment from KKR for 1.28 per cent share in Reliance Retail.
Besides, the RIL also has received five back to back investments from General Atlantic, Silver Lake co-investors, Mubadala, GIC and TPG in an exchange of 0.84 per cent, 0.38 per cent, 1.40 per cent, 1.22 per cent and 0.41 per cent stake, respectively. The pre-money equity value of Reliance Retail now stands at Rs 4.285 lakh crore following the investments.
All 13 investors who had poured in a combined Rs 1.52 lakh crore in Jio Platforms have been offered a chance to explore investing in the retail unit. Besides Silver Lake, KKR, General Atlantic and Mubadala, the other investors in Jio Platforms, which houses India's youngest but largest telecom operator Jio, include Facebook and Google.
Reliance Retail has consolidated its dominant market position in offline retail through its recent acquisition of retail, wholesale, logistics and warehouse businesses of Future Group for an enterprise value of Rs 24,173 crore. The firm in May this year launched JioMart, its e-commerce platform. Reliance aims to digitise kirana stores through its new commerce business.
In July, JioMart was serving 400,000 orders a day and is currently operational in 200 cities. With this, Jio Platforms and Reliance Retail account for over Rs 9 lakh crore of RIL's valuation of around Rs 15 lakh crore. Monetisation of retail, complemented by the capitalisation of Jio's tech assets, is expected to enable Reliance to take on Amazon and Walmart in India's online retail space.
Earlier this month, the RIL entered top 40 of the “world's most valuable firms” league as it became the first Indian company to top USD 210 billion in market capitalisation intra-day.
At the peak of the Covid-19 sell-off in March, the RIL’s market cap had plunged to USD 73.4 billion. Since then, the Mumbai-based firm has seen its market value soar 2.84 times. It has added USD 135 billion in market cap in 118 trading sessions since March 23. That translates into USD 1.14 billion m-cap addition in every session.
Reliance had crossed USD 150 billion market capitalisation on June 19, 2020, meaning it added around USD 60 billion in investor value in less than 60 market days.