Two US private equity funds to invest Rs 5,5oo crore into Reliance Retail

Private equity firm General Atlantic (GA) will invest Rs 3,675 crore to acquire a 0.84% stake in Reliance Retail, while Silver Lake will add Rs 1,875 crore to the Rs 7,500 crore investment it had announced on September 9.

New Delhi: Reliance Industries on Wednesday announced two more investments from US funds totalling Rs 5,500 crore in Reliance Retail Ventures, the holding company of India’s largest retailer.

Private equity firm General Atlantic (GA) will invest Rs 3,675 crore to acquire a 0.84% stake in Reliance Retail, while Silver Lake will add Rs 1,875 crore to the Rs 7,500 crore investment it had announced on September 9, which will take its total holding to 2.13% from 1.75%.

GA is the third global fund, after Silver Lake and KKR, to announce an investment in Reliance Retail in the past three weeks. They have so far agreed to invest about Rs 18,600 crore, valuing the retailer at more than Rs 4.20 lakh crore.


The deals reinforce RIL as India’s hottest investment destination for global bigwigs. Earlier this year, Reliance’s digital businesses under Jio Platforms received $20 billion of investment commitment from tech firms Facebook and Google and a clutch of private equity and sovereign wealth funds that included KKR and GA. GA has written a Rs 6,598 crore cheque to purchase a 1.34% stake in Jio Platforms.

Other Investors may Also be Interested
ET reported in September that Reliance was looking to raise Rs 60,000-63,000 crore by selling a 15% stake in Reliance Retail to a bevy of global investors and that the Mumbai conglomerate was also planning to induct an overseas strategic investor into the unit. ET also reported that Saudi Arabia’s Public Investment Firm (PIF), Abu Dhabi-based Mubadala Investment, Abu Dhabi Investment Authority, KKR and L Catterton were likely to pick stakes.

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GA has written a Rs 6,598 crore cheque to purchase a 1.34% stake in Jio Platforms.

In August, Reliance announced that it would acquire the nation’s second-largest retail enterprise, Future Group, for Rs 24,713 crore in a deal that would give it control over more than a third of India’s about $80 billion annual organised retailing business. Reliance Retail had launched the JioMart ecommerce venture in 200 cities in May, selling food and grocery during the lockdown period.

JioMart now plans to extend its portfolio into fashion and electronics in the coming months.

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