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KKR Picks up 1.28% Equity Stake of Reliance Retails for Rs.5550 Crore Investment

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On 23rd September 2020, Reliance Industries limited(RIL) announced that KKR (Kohlberg Kravis Roberts), global investment firm, will pick up 1.28% equity shares of RIL subsidiary Reliance Retail Ventures Limited(RRVL) by investing Rs.5550 crores.

The investment of KKR will translate into a 1.28% equity stake in RRVL on a fully diluted basis.

About the investment:

i.The investment values of RRVL at pre money equity value is estimated to be around Rs.4.21 lakh crore.

ii.This marks the second investment of KKR in a subsidiary of RIL, following its Rs.11367 crore investment in Jio Platforms to pick up 2.32% stake. This fund is made from KKR’s Asia Private Equity Funds.

iii.The financial advisors of RRVL and KKR for this deal are Morgan Stanley and Touche Tohmatsu India LLP respectively.

iv.This also marks the second deal of RRVL, retail arm of RIL following the Rs.7500 crore investment of Silver lake.

Key Points:

i.KKR’s investment will support RRVL to become India’s leading multi-channel retailer and support RRVL to build an inclusive retail economy in India.

ii.Reliance Retail’s platform enables the needs of consumers and small businesses and they also offer tools for kiranas to become a vital part of the value chain.

Recent Related News:

i.Alphabet Inc’s Google to buy 7.73% stake in Reliance Industries Limited(RIL)’s Jio Platforms for Rs 33,737 crores. For this purpose, they have signed a binding partnership and an investment agreement. With this, Jio Platforms has raised a total of Rs 1,52,056 crore.

ii.US based Electronic chip maker Intel’s investment arm, Intel Capital to buy 0.39% stake in Reliance Industries Limited(RIL)’s Jio Platforms for Rs 1,894.50 crore. This is the 12th deal of Jio Platforms. With this investment, Jio Platforms has raised Rs 1,17,588.45 crore from global investors since April 22.

About KKR (Kohlberg Kravis Roberts):
Co-Founders, Co-CEOs & Co-Chairmen– Henry Kravis & George R. Roberts
Headquarters– New York, United States of America

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