KKR, the global investment firm, is investing Rs 5,550 crore into Reliance Retail, a subsidiary of Reliance Industries, valuing Reliance Retail at a pre-money equity value of Rs 4.21 lakh crore. With this, KKR picks up a 1.28% equity stake in Reliance Retail Ventures Ltd.
In two weeks, this is the second agreement by Reliance Retail as earlier this month, Silver Lake Partners, private equity giant, had said that it will invest Rs 7,500 crore in Reliance Retail for a 1.75% stake.
This deal also marks KKR’s second investment in a subsidiary of Reliance Industries. Earlier this year, KKR made Rs 11,367 crore investment in Jio Platforms.
Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said, “I am pleased to welcome KKR as an investor in Reliance Retail Ventures as we continue our onward march to growing and transforming the Indian Retail ecosystem for the benefit of all Indians. KKR has a proven track record of being a valuable partner to industry-leading franchises and has been committed to India for many years.”
“We look forward to working with KKR’s global platform, industry knowledge and operational expertise across our digital services and retail businesses,” he added.
For this agreement, Morgan Stanley acted as financial advisor to Reliance Retail while Deloitte Touche Tohmatsu India LLP acted as financial advisor to KKR.
In India, Reliance Retail is operating 12,000 stores across several formats, including hypermarkets, cash and carry, electronics and apparel. The company reported revenues of Rs 31,633 crore and a net profit of Rs 431 crore in the three months ended June 2020.