General Atlantic to Buy 0.84% stake in Reliance Retail for Rs 3,675 Crore

On September 30, 2020 Reliance Industries Limited(RIL) and Reliance Retail Ventures Limited(RRVL) announced that General Atlantic will buy 0.84% stake in RRVL, a subsidiary of RIL for Rs 3,675 crore. This investment values RRVL at a pre-money equity value of Rs 4.285 lakh crore. With this investment, RRVL gets total funding over Rs 16,000 crore within September 2020.

• The investment of General Atlantic will translate into a 0.84% equity stake in RRVL on a fully diluted basis.
• The transaction is subject to regulatory and other customary approvals.

Key Info

i.This investment is General Atlantic’s second investment in a subsidiary of RIL, following an investment of Rs 6,598.38 crore in Jio Platforms for 1.38% announced in May, 2020.

ii.This investment is the 3rd private equity investment in RRVL, following a Rs 7,500 crore investment by Silver Lake for a 1.75% stake and Rs 5,550 crore investment by KKR for a 1.28% stake announced in September, 2020.

General Info

This investment of General Atlantic’s pre-money equity value of Rs 4.285 lakh crores is about Rs 7,000 crores higher than the valuation of Rs 4.21 lakh crore for the 1st two investments in RRVL announced in September, 2020.

Points to be Noted

i.In the Deloitte’s 23rd edition of Global Powers of Retailing 2020 index, RRVL topped the list of ‘50 fastest-growing retailers globally between FY 2013-2018’.

ii.It secured the 56th spot this year and is the only Indian company to be featured in this list.

Additional Info

• RRVL is the holding company of all the retail companies under the RIL Group.
• Reliance Retail Limited, a subsidiary of RRVL, operates India’s largest, fastest growing and most profitable retail business with 640 million footfalls across its approximately 12,000 stores across the nation.

Recent Related News:

On 31st July 2020, Biocon Biologics India approved the primary equity investment of around Rs.225 crore (30 MillionUSD) by Tata Capital Growth Fund for a 0.85% minority stake in Biocon Biologics, biosimilar business, at an equity valuation of around Rs. 26,250 crore (3.5 billion USD) and enterprise valuation of around Rs. 30,400 crore (4 billion USD).

About Reliance Industries Limited(RIL):
Chairman & Managing Director(CMD)– Mukesh Dhirubhai Ambani
Headquarters– Mumbai, Maharashtra

About General Atlantic:
Chief Executive Officer(CEO)–William E. Ford(Bill Ford)
MD and Head of India & Southeast Asia– Sandeep Naik