Mumbai: Global investment firm KKR will invest Rs 2,069.50 crore into Reliance Retail Ventures Ltd (RRVL) to increase its equity stake in the retail major from 1.17% to 1.42%.
The investment values RRVL at a pre-money equity value of Rs 8.36 lakh crore making it among the top four companies by equity value in the country.
The previous fund-raise round by RRVL in 2020 from various global investors of an aggregate amount of Rs 47,265 crore was done at a pre-money equity value of Rs 4.21 lakh crore.
KKRs follow-on investment will translate into an additional equity stake of 0.25% in RRVL on a fully diluted basis. This, combined with its stake from its investment of Rs 5,550 crore in RRVL in 2020, will take its total equity stake in RRVL to 1.42% on a fully diluted basis, an official statement from Reliance Industries Ltd said.
RRVL is a subsidiary of billionaire Mukesh Ambani-led Reliance Industries Ltd (RIL).
Commenting on the deal, Isha Mukesh Ambani, Director, Reliance Retail Ventures Limited, said, We look forward to continued engagement with KKR and to benefit from their global platform, industry knowledge and operational expertise, in our journey towards driving transformation of the Indian retail sector.
Joe Bae, Co-CEO, KKR, said, We are pleased to extend our relationship with Reliance Retail Ventures Limited. Throughout our investment period in Reliance Retail, we have been impressed by the companys vision and extensive work to empower retailers across India through digitalization, as well as by its resilience and performance in spite of the pandemic and other disruptions.
