GIC, TPG to invest about $1 billion in retail arm, says Reliance Industries




Indian oil-to-telecoms conglomerate Ltd said on Saturday Singapore sovereign wealth fund and global private equity firm Capital invested a combined Rs 7,350 crore (about $1 billion) in its retail unit.


Reliance, controlled by Asia’s richest man Mukesh Ambani, has secured more than $2 billion in investments from global investors, including KKR & Co, Abu Dhabi state fund Mubadala and Silver Lake Partners, in Ventures Ltd over the past few months.


will invest Rs 5,512 crore for a 1.22% stake, while Capital Management will invest Rs 1,838 crore to own a 0.41% equity stake in the retail arm, the company said.





The investments in values the company at a pre-money equity value of Rs 4.285 trillion ($58.47 billion), Reliance said.


This is Capital’s second investment in Reliance. In June, the firm invested $598 million in Reliance’s digital unit Jio Platforms.


Mumbai-headquartered Reliance has approached investors in Jio Platforms about buying stakes in its retail arm, Reuters had reported in September.


Reliance, already India’s biggest retailer with roughly 12,000 stores, forged a $3.38 billion deal in August to acquire rival Future Group’s retail business.


The conglomerate is also expanding its so-called new commerce venture, which ties neighborhood stores to Reliance for online deliveries of groceries, apparel and electronics in a space currently dominated by Walmart Inc’s Flipkart and Amazon.com Inc’s Indian arm.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor





Source link

Leave a Reply

Your email address will not be published. Required fields are marked *