Saturday, October 31

Another cheque: Silver Lake co-investors to invest additional Rs 1,875 cr in Reliance Retail

Mumbai: Oil-to-retail conglomerate Reliance Industries (RIL) said on late Wednesday that co-investors of Silver Lake will invest an additional Rs 1,875 crore into its unit Reliance Retail Ventures (RRVL), a second such deal in a single day.
This will bring the total investment by Silver Lake and its co-investors in the subsidiary to Rs 9,375 crore, and they will hold a 2.13 per cent equity stake in RRVL on a fully diluted basis, RIL said in a late evening release.

“Silver Lake’s additional investment is a strong endorsement of the tremendous potential of Indian retail and the capabilities of Reliance Retail,” Mukesh Ambani, chairman and managing director of RIL said in a release.

Earlier in the day, RIL said General Atlantic will invest Rs 3,675 crore into Reliance Retail Ventures for a 0.84 per cent stake.

With these deals, Reliance Retail has collected a combined Rs 18,600 crore in the past few weeks from investors including US buyout firm KKR & Co and General Atlantic.

Ahead of the announcement, RIL shares closed 0.49 per cent lower at Rs 2,233.75. They are up 48 per cent for the year to date, and have surged 154 per cent from their March lows.

RRVL reported a consolidated turnover of Rs 1,62,936 crore ($21.7 billion) and net profit of Rs 5,448 crore ($726.4 million) for FY20. It topped the list of ’50 fastest-growing retailers globally between FY2013-2018′ in the Deloitte’s Global Powers of Retailing 2020 index.

Reliance Retail, a subsidiary of RRVL, operates India’s largest retail business serving close to 640 million footfalls across its around 12,000 stores across the country.

Reliance Retail has started a transformational digitalization of small and unorganised merchants and plans to expand the network to over 20 million of these merchants.

Credit: Stocks-Markets-Economic Times

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