Mukesh Ambani’s RIL receives Rs 7,500 crore from Silver Lake for Reliance Retail stake sale

By: |
September 26, 2020 5:27 PM

Reliance Industries Ltd in a BSE filing informed that RRVL has received the subscription amount of Rs 7,500 crore from SLP Rainbow Holdings Pte Ltd (Silver Lake).

Mukesh ambani, RIL, Reliance industriesLast month, Reliance acquired Kishore Biyani’s Future Group’s retail, logistics, warehousing and wholesale businesses for Rs 24,713 crore to boost its retail vertical. Image: PTI

Mukesh Ambani’s RIL announced on Saturday that it has received Rs 7,500 crore from US private equity firm Silver Lake Partners. US private equity firm Silver Lake Partners has picked up 1.75 per cent stake in its retail arm, Reliance Retail Ventures Ltd (RRVL). The oil to telecom conglomerate said in an exchange filing that RRVL has received the subscription amount of Rs 7,500 crore from SLP Rainbow Holdings Pte Ltd (Silver Lake). Following the allotment of equity stake, SLP Rainbow Holdings will hold 1.75 per cent of the fully diluted equity share capital of RRVL. This investment had valued Reliance Retail at Rs 4.21 lakh crore. So far this year, Silver Lake bought a total of 2.08 per cent equity stake in RIL’s digital services arm Reliance Jio, and 1.75 per cent in retail arm Reliance Retail for a total of Rs 17,702 crore.

Silver Lake’s other investments included Airbnb, Alibaba, Alphabet’s Verily and Waymo units, Dell Technologies, Twitter and numerous other global technology leaders. Last month, Reliance acquired Kishore Biyani’s Future Group’s retail, logistics, warehousing and wholesale businesses for Rs 24,713 crore to boost its retail vertical. Following a 9.99 per cent stake by Facebook in the Jio Platform, Silver Lake bought 2.08 per cent in Jio in two tranches for a total of Rs 10,202.55 crore.

Earlier this week, global investment firm KKR announced to invest Rs 5,550 crore into Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries. KKR has invested in RIL’s retail business for a 1.28 per cent equity stake on a fully diluted basis. So far this month, Mukesh Ambani’s retail business has received a total Rs 13,050 crore for an equity exchange of 3.03 per cent in Reliance Retail Ventures Ltd. KKR has investments in Epic Games, OutSystems, Internet Brands, Go-Jek and Voyager Innovations. Reliance Retail had a total turnover of Rs 162,936 crore and a net profit of Rs 5,448 crore at the end of the previous financial year.

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