Silver Lake and its co-investors have brought in an additional Rs 1,875 crore investment to buy more stake in Mukesh Ambani’s Reliance Retail, taking their total investment into RIL’s retail unit to Rs 9,375 crore. The additional investment will take Silver Lake and co-investors’ total equity stake in Reliance Retail to 2.13%, Reliance Industries said in a statement on Wednesday. Earlier this morning, Reliance Industries had announced a Rs 3,675 crore investment from General Atlantic. Both General Atlantic, and Silver Lake’s additional investment into Reliance Retail are made at a valuation of Rs 4.285 lakh crore. This is Rs 7,000 crore more than Silver Lake’s previous investment into Reliance Retail at a valuation of Rs 4.21 lakh crore.
The list of investors putting in money into Reliance Retail appears to be a repeat of that in RIL’s telecom and digital unit Reliance Jio Platforms. So far, Reliance Retail has got Rs 18,550 crore from Silver Lake and co-investors, General Atlantic, and KKR — all of whom invested in Reliance Jio Platforms as well. RIL ended up selling 32.97% equity stake in Reliance Jio Platforms for a total of Rs 1.52 lakh crore to global investors also including Facebook and Google.
“Silver Lake and its co-investors are valued partners on our journey to transform Indian Retail for the benefit of all Indians. We are pleased to have their confidence and support, as well as the benefit of their leadership in global technology investing and their valued network of relationships for the Retail revolution in India. Silver Lake’s additional investment is a strong endorsement of the tremendous potential of Indian Retail and the capabilities of Reliance Retail,” Mukesh Ambani, Chairman and Managing Director, Reliance Industries Ltd, said in the statement.
Morgan Stanley was the financial advisor to Reliance Retail for the deal; while Cyril Amarchand Mangaldas and Davis Polk & Wardwell were the legal counsels. Latham & Watkins, and Shardul Amarchand Mangaldas & Co acted as legal counsels for Silver Lake.