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GIC, TPG to invest about $1 billion in Reliance Retail

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GIC,-TPG-to-invest-about-$1-billion-in-Reliance-RetailThe Government of Singapore Investment Corporation (GIC), and United States based Texas Pacific Group (TPG) will invest a combined USD 1 Billion (INR 7, 350 Crores) in Reliance Retail Ventures Limited (RRVL).

GIC will invest INR 5, 512 Crore for 1.22% stake while TPG Capital Management will invest INR 1, 838 Crore to own 0.41% equity stake in RRVL. 

About the Investments:

i.The investments value the company at a pre-money equity value of INR 4.285 trillion (USD 58.47 Billion).

ii.This is TPG Capital’s second investment in Reliance, following its $598 million investment in Reliance’s digital unit Jio Platforms in June, 2020. 

About Reliance Retail Ventures Limited (RRVL):

i.It was established in 2006, currently it serves more than 3.5 million customers each week through 12, 000 physical stores in 6, 500 cities and towns across the country.

ii.According to estimates from research firms, Reliance’s Physical retail commands 97% of all retail sales in India.

Recent Related News:

i.On May 04, 2020, US (United States) private equity company Silver Lake partners has bought a 1.15% stake in Jio Platforms Limited, a wholly-owned subsidiary of Reliance Industries Limited (RIL) for Rs 5,655.75 crore ($750 million).

ii.On 9th September 2020, Silver Lake, US based global technology investment firm, is set to invest Rs.7500 crores in Reliance Retail Ventures Limited(RRVL), a subsidiary of Reliance Industries Limited (RIL). This investment will provide Silver lake a 1.75% stake in RRVL. 

About Reliance Industries Limited (RIL):
Chief Executive Officer (CEO) –  Mukesh Ambani
Headquarters – Mumbai, Maharashtra