The follow-on investment by KKR values the retail subsidiary of Reliance Industries at Rs 8.36 lakh crore (approximately $101 billion), which is the double the valuation it got during the fundraising in 2020.
“This investment values RRVL at a pre-money equity value of Rs 8.361 lakh crore, which makes it among the top four companies by equity value in the country,” RIL said in a release.
In 2020, KKR had invested Rs 5,550 crore in Reliance Retail for a 1.17% stake. Three years ago, the retail behemoth had raised Rs 47,265 crore from various global investors, including KKR, at a pre-money equity value of Rs 4.21 lakh crore.
“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,” said Joe Bae, Co-CEO, KKR.
Reliance Retail operates India’s largest retail business with an integrated omni-channel network of over 18,500 stores and digital commerce platforms across grocery, consumer electronics, fashion & lifestyle, and pharma consumption baskets.
“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,” said Isha Mukesh Ambani, director, Reliance Retail. The investment by KKR follows Qatari sovereign wealth fund Qatar Investment Authority’s $1 billion investment in Reliance Retail for a nearly 1% stake. The fund’s investment also valued the retailer at $100 billion.
KKR’s investment comes primarily from its Asian Fund IV, and the transaction is subject to regulatory and other customary approvals.
Morgan Stanley acted as the financial advisor to Reliance Retail Ventures, and Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal counsels. On Monday, shares of RIL ended 1% higher on the National Stock Exchange at Rs 2,473.05.