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Silver Lake Co-investors Buy More Stake in Reliance Retail: All You Need to Know

Reliance Retail is receiving growing interest from overseas investors and has been raising funds at a sprinter’s pace in the past few weeks.

Reliance Retail is receiving growing interest from overseas investors and has been raising funds at a sprinter’s pace in the past few weeks.

The investment brings the aggregate investment by Silver Lake and its co-investors in Reliance Retail to Rs 9,375 crore, which will translate into a 2.13 per cent equity stake.

US private equity firm Silver Lake Partners will invest an additional Rs 1,875 crore in the retail arm of Reliance Industries, the Indian firm said in a statement on Wednesday.

"Reliance Industries Limited ('Reliance Industries') and Reliance Retail Ventures Limited ('RRVL') announced today that co-investors of Silver Lake will invest an additional Rs 1,875 crore into RRVL, a subsidiary of Reliance Industries," the statement said.

This brings the aggregate investment by Silver Lake and its co-investors in RRVL to Rs 9,375 crore, which will translate into a 2.13 per cent equity stake in RRVL.

Here’s all you need to know about the latest investment:

- The investment values Reliance Retail at a pre-money equity value of Rs 4.285 lakh crore

- Earlier on Wednesday, another US-based private equity firm General Atlantic had announced investing Rs 3,675 crore for a 0.84 per cent stake in Reliance Retail.

- Commenting on the development, Reliance Industries Chairman and Managing Director Mukesh Ambani said, "Silver Lake and its co-investors are valued partners on our journey to transform Indian Retail for the benefit of all Indians. We are pleased to have their confidence and support, as well as the benefit of their leadership in global technology investing and their valued network of relationships for the Retail revolution in India."

- Silver Lake Co-CEO and Managing Partner Egon Durban said, "We are delighted to increase our exposure and bring more of our co-investors into this unmatched opportunity. The continued investment momentum over the last few weeks is proof of the compelling vision and business model of Reliance Retail - and underscores the tremendous potential of the transformative New Commerce initiative."

- Reliance Retail Limited, a subsidiary of RRVL, operates India's largest, fastest-growing and most profitable retail business spanning supermarkets, consumer electronics chain stores, cash and carry wholesale business, fast-fashion outlets, and online grocery store JioMart.

- It operates about 12,000 stores in nearly 7,000 towns, with 640 million footfalls across core categories of grocery, consumer electronics and apparel.

- Revenues for Reliance Retail in FY20 was Rs 1.63 lakh crore.

- With the latest investments, Reliance has now sold about a 4.3% stake and raised 186 billion rupees ($2.53 billion) in its retail unit.

Disclosure: News18.com is part of Network18 Media & Investment Limited which is owned by Reliance Industries Limited.

first published:October 01, 2020, 18:30 IST