GIC, TPG to invest a total ₹7,350 cr. in RIL retail biz

Singapore fund, PE firm to buy stakes

October 03, 2020 11:02 pm | Updated 11:02 pm IST - MUMBAI

A worker pushes trolleys outside the Reliance Market superstore in the western Indian city of Ahmedabad March 19, 2014. Billionaire Mukesh Ambani's Reliance Retail is poised to perform a rare feat in India's notoriously complex retail market by finally turning a profit. The time and cost involved, however, could put off global and local rivals from even trying to copy it. This seemingly inexhaustible combination of financing and patience has given Reliance an edge over smaller local rivals that lack its deep pockets, and global chains like Carrefour SA and Wal-Mart Stores Inc which would have to invest vast amounts of capital, time and energy to set up retail shops in India but reap miniscule initial returns. Picture taken March 19, 2014. To match story INDIA-RELIANCERETAIL/     REUTERS/Amit Dave (INDIA - Tags: BUSINESS)

A worker pushes trolleys outside the Reliance Market superstore in the western Indian city of Ahmedabad March 19, 2014. Billionaire Mukesh Ambani's Reliance Retail is poised to perform a rare feat in India's notoriously complex retail market by finally turning a profit. The time and cost involved, however, could put off global and local rivals from even trying to copy it. This seemingly inexhaustible combination of financing and patience has given Reliance an edge over smaller local rivals that lack its deep pockets, and global chains like Carrefour SA and Wal-Mart Stores Inc which would have to invest vast amounts of capital, time and energy to set up retail shops in India but reap miniscule initial returns. Picture taken March 19, 2014. To match story INDIA-RELIANCERETAIL/ REUTERS/Amit Dave (INDIA - Tags: BUSINESS)

Reliance Retail Ventures Ltd. (RRVL) said global investment firms GIC and TPG would invest ₹5,512.5 crore and ₹ 1,837.5 crore, respectively, in the company to acquire small minority stakes.

These investments value Reliance Retail at a pre-money equity value of ₹4.285 lakh crore, parent Reliance Industries Ltd. (RIL) said in filings with the stock exchanges on Saturday.

While GIC’s investment would translate into a 1.22% equity stake in RRVL on a fully-diluted basis, TPG would acquire a 0.41% equity stake in RRVL through its investment.

TPG would be making the investment from its TPG Capital Asia fund, and the infusion in RRVL would be the private equity firm’s second in an RIL subsidiary, following the ₹4,546.8 crore investment in Jio Platforms announced earlier this year.

The transactions would be subject to regulatory approvals, RIL said.

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