Reliance Industries retail arm RRVL receives Rs 5,550 cr investment from global firm KKR

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The investment valued Reliance Retail, which runs grocery stores and fashion chains, at a pre-money equity value of Rs 4.21 lakh crore

Mukesh Ambani-led Reliance Industries on Thursday said it received Rs 5,550 crore from global investment firm KKR for its retail arm Reliance Retail Ventures Ltd (RRVL).

Last month, Reliance Industries (RIL) had announced that KKR would invest Rs 5,550 crore in RRVL for 1.28 percent equity stake.

Reliance Retail Ventures Limited, a subsidiary of the company, on Thursday received the subscription amount of Rs 5,550 crore from Alyssum Asia Holdings II Pte. Ltd. (a unit of KKR) and allotted 81,348,479 equity shares to KKR, Reliance Industries said in a regulatory filing.

The investment valued Reliance Retail, which runs grocery stores and fashion chains, at a pre-money equity value of Rs 4.21 lakh crore.

RRVL reported a consolidated turnover of Rs 162,936 crore ($ 21.7 billion) and net profit of Rs 5,448 crore ($ 726.4 million) for the year ended March 31, 2020.

This was KKR’s second investment in RIL subsidiaries. It had previously picked up a 2.32 percent stake in the digital arm, Jio Platforms, for Rs 11,367 crore.

RRVL has raised Rs 37,710 crore from leading global investors including Silver Lake, KKR, General Atlantic, Mubadala, GIC, TPG and ADIA in a span of just four weeks till October 6, 2020.  

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

Reliance Retail’s vision is to galvanise the Indian retail sector through an inclusive strategy serving millions of customers by empowering millions of farmers and micro, small and medium enterprises (MSMEs) and working closely with global and domestic companies as a preferred partner, to deliver immense benefits to Indian society, while protecting and generating employment for millions of Indians.

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