Reliance Retail has bagged yet another billion dollar investment, this time from two global funds – Singapore’s GIC and US-based TPG, which will acquire 1.6% stake in the platform for ₹73.50 billion (about $1 billion).
Out of this, ₹55.12 billion will be invested by GIC, which will go on to acquire a 1.22% stake in the company. TPG’s share will be much smaller, with the firm getting a 0.41% equity stake in the retail arm of the company for ₹18.38 billion.
The round valued the company at $58.47 billion, and has allowed the company to raise nearly ₹36,200 crore for about 7.3% of its stake so far.
Mukesh Ambani, Chairman of Reliance Industries and Asia’s wealthiest man, said in a statement, “I am pleased to welcome TPG as valued investors in Reliance Retail Ventures mission of growing and transforming the Indian Retail ecosystem for the benefit of all Indians. TPG has a proven track record of being a valuable partner to global technology businesses and industry leaders and we look forward to their guidance and support in our journey.”
The last month has been very busy for India’s largest retail company, as it has went on to raise multiple billion dollar investments from many of its existing partners in Jio Platforms. The funding round was started by Silver Lake, which poured in $1.02 billion in the company for a 1.75% stake. KKR, another Jio Platforms partner, acquired a 1.28% stake in Reliance retail for $747 million.
Over the last two days, two more existing partners, General Atlantic and Mubadala, have invested $498 million and $857 million in the company for a 0.84% and 1.4% stake respectively.
In fact, out of all the companies and investment funds that have participated in the funding round so far, GIC is the only one that does not have a share in Jio Platforms.
Mukesh Ambani is delighted about the investment, and has said, “It gives me great pleasure to welcome GIC to the Reliance Retail family. I am delighted that GIC, with its track record of close to four decades of successful long-term value investing across the world, is partnering with Reliance Retail in its mission to transform the Indian retail
landscape. GIC’s global network and track record of long-term partnerships will be invaluable to the transformation story of Indian Retail. This investment is a strong endorsement of our strategy and India’s potential.”
The company had offered partners from Jio Platforms a chance to acquire as much as 15% of RRVL, in a bid to raise about Rs. 60,000 -Rs. 63,000 crores. Thus, from the looks of it, we are only half way there and there might be a lot more to see from the company.
