KKR To Investment Rs 2,069.50 Crore In Reliance Retail, Increase Stake To 1.42%

Reliance Retail Ventures Limited (RRVL) stated on Monday that global investment firm KKR will invest Rs 2,069.50 crore in RRVL, a subsidiary of Reliance Industries Limited, through an associate.

This investment places RRVL at a pre-money equity value of Rs 8.361 lakh crore, ranking it among the top four corporations in the country by equity value.

On a fully diluted basis, KKR's follow-on investment will result in an additional equity holding of 0.25% in RRVL. This, together with its holding from its Rs 5,550 crore investment in RRVL in 2020, will bring its total equity stake in RRVL to 1.42% on a fully diluted basis. RRVL had raised Rs 47,265 crore from various worldwide investors in 2020 at a pre-money equity valuation of Rs 4.21 lakh crore.

KKR's investment comes primarily from its Asian Fund IV. The transaction is subject to regulatory and other customary approvals.

Morgan Stanley acted as financial advisor to Reliance Retail Ventures Limited and Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal counsels.

Reliance Industries Limited's shares currently trading at Rs 2,460.75 per share on the BSE. Today it opened at Rs 2,489.70 per share. Stock gained 1.49% in the last 1 week, while in the last 1 year, it gained 11.94%.

Ms Isha Mukesh Ambani, Director, Reliance Retail Ventures Limited, said, "We are pleased to receive continued support from KKR as an investor in Reliance Retail Ventures Limited. We highly value our deepening partnership with KKR, and their latest investment in RRVL after their previous investment further reinforces their strong belief in RRVL's vision and capabilities. We look forward to continued engagement with KKR and to benefit from their global platform, industry knowledge and operational expertise, in our journey towards driving transformation of the Indian retail sector."

Mr Joe Bae, Co-CEO, KKR, said, "We are pleased to extend our relationship with Reliance Retail Ventures Limited. Throughout our investment period in Reliance Retail, we have been impressed by the company's vision and extensive work to empower retailers across India through digitalization, as well as by its resilience and performance in spite of the pandemic and other disruptions. We look forward to continuing to work alongside the Reliance Retail team to support the company's mission to build a more inclusive Indian retail economy."

Mr Gaurav Trehan, Head of Asia Pacific Private Equity and Head of India, KKR, added, "Reliance Retail is a true corporate leader and innovator in India, and its differentiated model has the potential to digitalize and transform the country's retail industry. We are pleased to have the opportunity to continue collaborating with this team and pursue the growth opportunities ahead."