GIC and TPG investment announcements follow similar investment deals with Abu Dhabi sovereign wealth fund Mubadala Investment Co, Silver Lake, KKR and General Atlantic.
RIL, just this week so far, has announced five such equity investment deals for Reliance Retail. Image: Reuters
Reliance Retail has got two more global investors putting in Rs 7,350 crore for a total of 1.6 per cent equity stake. Singapore’s sovereign wealth fund GIC will invest Rs 5,512.5 crore to buy 1.22 per cent share in Reliance Retail while global investment firm TPG will invest Rs 1,837.5 crore to buy 0.41 per cent equity stake, Reliance Industries Ltd said in separate announcements on Friday-Saturday midnight. RIL, just this week so far, has announced five such equity investment deals for Reliance Retail.
GIC and TPG investment announcements follow similar investment deals with Abu Dhabi sovereign wealth fund Mubadala Investment Co, Silver Lake, KKR and General Atlantic. The GIC and TPG investments value Reliance Retail Ventures Ltd (RRVL) at a pre-money equity value of Rs 4.285 lakh crore. Oil-to-telecom conglomerate RIL, in less than a month, has sold 7.28 per cent stake in its retail business for Rs 32,197.5 crore.
Reliance Industries has received investment from half a dozen global firms including Silver Lake, KKR, General Atlantic, Mubadala. On September 9, Silver Lake announced an investment of Rs 7,500 for 1.75 per cent equity stake. On September 23, RIL announced Rs 5,550 crore investment from KKR for 1.28 per cent share in Reliance Retail. However, since September 30, RIL has received five back to back investments from General Atlantic, Silver Lake co-investors, Mubadala, GIC and TPG for an exchange of 0.84 per cent, 0.38 per cent, 1.40 per cent, 1.22 per cent and 0.41 per cent stake, respectively.
RIL raised Rs 1.52 lakh crore from similar investments into Jio Platforms
This year in August, Reliance Retail had acquired Kishore Biyani’s Future Group’s retail, logistics, warehousing and wholesale businesses for around Rs 24,713 crore. Before Retail Retail, RIL had raised about Rs 1.52 lakh crore for Jio Platforms from global investors, including Facebook, Google, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG, L Catterton, Public Investment Fund of Saudi Arabia, Intel Capital and Qualcomm Ventures, for a total consideration of 32.97 per cent stake.
Reliance Jio Platforms vs Reliance Retail equity stake sales: What’s the only difference so far?
Singapore’s GIC is the new investor to invest in RIL’s retail business; it had not made any capital investment in Jio Platforms. “We believe Reliance Retail will continue to use its extensive supply chain and store networks, as well as strong logistics and data infrastructure, to add value to its customers and shareholders,” said Lim Chow Kiat, Chief Executive Officer, GIC.
TPG is a global alternative asset firm with more than $83 billion of assets under management across a wide range of asset classes, including private equity, growth equity, real estate and public equity. TPG is making the investment from its TPG Capital Asia fund. “We are excited to join with them as they seek to create a more inclusive retail industry that allows Kiranas and Indian consumers to benefit from the connectivity, efficiency, and accessibility of the Reliance Retail omnichannel platform,” said Jim Coulter, Co-CEO, TPG.
Morgan Stanley acted as financial advisor to Reliance Retail and Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal counsel.