Key Points:
- GIC and TPG are investing ₹ 7,350 crores in Reliance Retail.
- TPG will invest ₹1,837.5 crore to buy 0.41 % stake.
- GIC will invest ₹5,512.5 crore to buy 1.22% equity stake
- Reliance has sold 7.28% stake since September 9.
Reliance Industries Ltd. owned by Billionaire Mukesh Ambani’s announced to raise ₹ 7,350 crores from two investors on Friday. Singapore’s sovereign wealth fund – Government of Singapore Investment Corporation (GIC) and Global alternative asset firm Texas Pacific Group (TPG) are the two investors that will buy a stake in the Reliance Group’s Retail arm.
“Through two separate deals, Reliance Industries will sell 1.63 per cent stake in Reliance Retail Ventures Limited (RRVL). GIC will invest Rs 5,512.5 crore to buy 1.22 per cent share in RRVL,”
the Indian firm said in a statement.
Reliance Industries Limited (Reliance Industries) and Reliance Retail Ventures Limited (RRVL) announced today that:
- TPG will invest ₹1,837.5 crore to buy 0.41 per cent stake in RRVL.
- It will be the second investment by TPG in a subsidiary of Reliance Industries.
- TPG invested ₹4,546.8 crore in Jio Platforms that were announced earlier this year.
- https://www.ril.com/getattachment/1199f7a3-0583-4380-b528-9627ef1fd0bf/TPG-to-Invest-%E2%82%B9-1,837-5-Crore-in-Reliance-Retail-V.aspx
- GIC will invest ₹5,512.5 crore to buy 1.22% equity stake in RRVL.
- This investment values RRVL at a pre-money equity value of ₹285 lakh crore.
- GIC’s investment will be on a fully diluted basis.
- https://www.ril.com/getattachment/de2dd8ac-8728-4e20-ba70-a9adb58c447c/GIC-to-Invest-%E2%82%B9-5,512-5-Crore-in-Reliance-Retail-V.aspx
Ambani’s battle for the retail market domination is seen being fuelled by these investments. Ruling the retail market has been the dream of Jeff Bezos’ Amazon and Walmart Inc’s Flipkart.
Jio Mart was launched in the month of May by the firm which is an E-Commerce platform. Reliance endeavors to digitize Kirana stores through its new commerce business. 40,000 orders a day in July and 200 cities have Jio Mart operational. With this, Jio Platforms and Reliance Retail account for over Rs 9 lakh crore of RIL’s valuation of around Rs 15 lakh crore.
Reliance Industries has entered into five deals to sell stake in RRVL in less than three days,
Reliance Industries has sold 7.28% stake in the retail unit since September 9 for a total of ₹32,297.50 crore.
