Mukesh Ambani’s Reliance Retail Ventures to raise Rs 7,500 cr from US-based Silver Lake

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This is the second billion-dollar investment by Silver Lake in an RIL subsidiary after the $1.35 billion investment in Jio Platforms announced earlier this year

US-based Silver Lake will invest Rs 7,500 crore in Reliance Retail Ventures, a subsidiary of Mukesh Ambani-led Reliance Industries Limited (RIL), for a 1.75 percent stake in the company.

RIL said on Wednesday that the investment by Silver Lake values Reliance Retail Ventures (RRVL) at a pre-money equity value of Rs 4.21 lakh crore. Silver Lake’s investment will translate into a 1.75 percent equity stake in RRVL on a fully diluted basis.

This is the second billion-dollar investment by Silver Lake in an RIL subsidiary after the $1.35 billion investment in Jio Platforms announced earlier this year.

Commenting on the deal, Ambani, Chairman and Managing Director, RIL, said, “I am delighted to extend our relationship with Silver Lake to our transformational efforts of building an inclusive partnership with millions of small merchants while providing value to Indian consumers across the country in the Indian retail sector. We believe technology will be key to bringing the much-needed transformation in this sector so that various constituents of the retail ecosystem can collaborate to build inclusive growth platforms. Silver Lake will be an invaluable partner in implementing our vision for Indian Retail.”

Morgan Stanley acted as financial advisor to RRVL and Cyril Amarchand Mangaldas and Davis Polk and Wardwell acted as legal counsels. Latham and Watkins and Shardul Amarchand Mangaldas and Co acted as legal counsels for Silver Lake.

Commenting on the investment, Egon Durban, Co-CEO and Managing Partner of Silver Lake, said, “We are pleased to deepen our relationship with Reliance with this investment. Mukesh Ambani and his team at Reliance have created an outstanding world leader in retail and technology through their courageous vision, commitment to societal benefits, innovation excellence and relentless execution. The success of JioMart in such a short time span, especially while India, along with the rest of the world, battles the COVID-19 pandemic, is truly unprecedented, and the most exciting growth phase has just begun.”

Durban further said that Reliance’s new commerce strategy could become the disruptor of this decade.

RRVL reported a consolidated turnover of Rs 162,936 crore and net profit of Rs 5,448 crore for the year ended March 31, 2020.

Above all, Reliance Retail topped the list of ‘50 fastest-growing retailers globally between FY2013-2018’ in the Deloitte's Global Powers of Retailing 2020 index.

Reliance Retail Limited, a subsidiary of RRVL, operates India's largest, fastest growing and most profitable retail business serving close to 640 million footfalls across its 12,000 stores nationwide.

Expanding its presence in the country's retail sector, RIL acquired the retail, wholesale, logistics and warehousing businesses of Kishore Biyani-led Future Group for Rs 24,713 crore last month.

Image credit: India TV

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