KKR & Co will be investing Rs 5,500 crore in Reliance Retail Ventures Limited for a 1.28 percent stake, as per Reliance Industries Limited's stock exchange filing on Wednesday.
"This investment values Reliance Retail at a pre-money equity value of Rs 4.21 lakh crore", the company's statement said.
This is the second deal by KKR in a subsidiary of the Mukesh Ambani-led conglomerate. The American global investment company has $5.1 billion in private equity investments across more than 15 Indian companies, including Jio Platforms, JB Chemicals, Max Healthcare, Eurokids International and Ramky Enviro Engineers.
In his statement on the latest investment received, MD and Chairman of RIL, Mukesh Ambani 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 is making its investment from its Asia private equity funds. The transaction is subject to regulatory and other customary approvals.
Earlier on 9 September, RIL had announced the investment of American private equity firm Silver Lake's Rs 7,500 crore investment into Reliance Retail Ventures Limited.
Morgan Stanley acted as financial advisor to Reliance Retail and Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal counsels. Deloitte Touche Tohmatsu India LLP acted as financial advisor to KKR. Shardul Amarchand Mangaldas & Co. and Simpson Thacher & Bartlett LLP acted as legal counsel to KKR.