GIC to pick 1.22% stake in Reliance Retail for Rs 5,512.5 crore

By: |
October 3, 2020 10:06 AM

On Thursday, RIL had announced Abu Dhabi-based sovereign wealth fund Mubadala Investment Co will invest Rs 6,247.5 crore to buy a 1.4 per cent stake in its retail arm.

This is the fourth such deal in less than three days for RRVL.

Singapore’s sovereign wealth fund GIC will invest Rs 5,512.5 crore to buy 1.22 per cent share in Reliance Industries Ltd’s retail arm, Reliance Retail Ventures Limited (RRVL), the Indian firm said in a statement on Saturday.

This is the fourth such deal in less than three days for RRVL.

“This investment values RRVL at a pre-money equity value of Rs 4.285 lakh crore,” it said.

On Thursday, RIL had announced Abu Dhabi-based sovereign wealth fund Mubadala Investment Co will invest Rs 6,247.5 crore to buy a 1.4 per cent stake in its retail arm.

On Wednesday, global private equity firm General Atlantic picked up a 0.84 per cent stake in the company for Rs 3,675 crore. Also, US PE investor Silver Lake made a second investment of Rs 1,875 crore, taking its total fund infusion in Reliance Retail to Rs 9,375 crore for a 2.13 per cent stake.

KKR had previously taken a 1.28 per cent stake in the firm for Rs 5,550 crore.

Commenting on the development Mukesh Ambani, chairman and managing director of Reliance Industries, said: “I am delighted that GIC, with its track record of close to four decades of successful long-term value investing across the world, is partnering with Reliance Retail in its mission to transform the Indian retail landscape. GIC’s global network and track record of long-term partnerships will be invaluable to the transformation story of Indian Retail.”

“This investment is a strong endorsement of our strategy and India’s potential,” he said.

GIC Chief Executive Officer Lim Chow Kiat said: “GIC is pleased to partner with Reliance through this new investment, which will enable the company to position Reliance Retail for the strong secular growth in India’s retail market.”

The transaction is subject to regulatory and other customary approvals.

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

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