- By Vaamanaa Sethi
- Tue, 12 Sep 2023 10:18 AM (IST)
- Source:JND
Global investment firm KKR is all set to invest Rs 2,069 crore through an affiliate in Reliance Retail (RRVL), the retail arm of Reliance Industries. The follow-up investment by the global firm will lead to an increase in its stake in RRVL from 1.17% to 1.42%.
In 2020, KKR had invested around Rs 5,550 crore for the first time in Reliance’s retail wing.
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“KKR’s follow-on investment will translate into an additional equity stake of 0.25% in RRVL on a fully-diluted basis. Combined with its stake from an investment of ₹5,550 crore in RRVL in 2020, it will take its total equity stake in RRVL to 1.42% on a fully-diluted basis," Reliance Industries said in an exchange filing.
For this transaction, RRVL had a pre-money equity value of Rs 8.361 trillion, which makes it among the top four companies by equity value in India, it added. KKR’s investment comes primarily from its Asian Fund IV.
“Throughout our investment period in Reliance Retail we have been impressed by the company’s vision and extensive work to empower retailers across India through digitalization, as well as by its resilience and performance in spite of covid and other disruptions. We look forward to continuing to work alongside the Reliance Retail team to support its mission to build a more inclusive Indian retail economy," Joe Bae, co-CEO, KKR, said in a statement.
Other than RRVL, KKR has also invested Rs 11,367 crore in Jio Platforms Ltd, which is the digital and subsidiary platform of Reliance Industries.
KKR’s investment came as a follow-up investment after Qatar Investment Authority (QIA) announced an investment of Rs 8,278 crore in RRVL for a 0.99% equity stake last month.
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“We highly value our deepening partnership with KKR, and their latest investment in RRVL after their previous investment further reinforces their strong belief in RRVL’s vision and capabilities. 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," Isha Mukesh Ambani, director, RRVL, said.
