Reliance Retail gets US investor; Silver Lake to invest Rs 7,500 cr in Mukesh Ambani’s retail biz

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Updated: Sep 09, 2020 10:19 AM

Mukesh Ambani's Reliance Retail has got another push with the company announcing that Silver Lake will invest Rs 7,500 crore in RIL's arm.

Sanjiv Singh, Reliance, Reliance Group President, Indian Oil Corp, Mukesh Ambani, Reliance Industries Ltd,RIL O2C business, latest news on reliance groupReliance Retail is RIL’s retail arm.

Mukesh Ambani’s Reliance Retail has got another push with the company announcing that Silver Lake will invest Rs 7,500 crore in RIL’s arm. The deal values Reliance Retail at Rs 4.21 lakh crore. Silver Lake’s investment will translate into a 1.75% equity stake in Reliance Retail Ventures Ltd on a fully diluted basis. Silver Lake’s investment is the second billion dollar investment by the company in a Reliance Industries subsidiary after its $1.35 billion investment in Jio Platforms announced earlier this year. Silver Lake bought a total of 2.08% equity stake in RIL’s telecom and digital services arm Reliance Jio for Rs 10,202 crore.

“We believe technology will be key to bringing the much-needed transformation in this sector so that various constituents of the retail ecosystem can collaborate to build inclusive growth platforms. Silver Lake will be an invaluable partner in implementing our vision for Indian Retail,” Mukesh Ambani, chairman and managing director, RIL, said. Mukesh Ambani-run Reliance Industries Ltd (RIL) is India’s largest private listed company with a market capitalization of Rs 13.91 lakh crore (nearly $189 billion). 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.

Earlier, the Financial Times had reported that the company is in talks to sell equity stake worth $1 billion in Reliance Retail to US-based private equity firm Silver Lake, in a deal that could value Reliance Retail at $57 billion.

Reliance Retail had recently acquired Kishore Biyani’s Future Group’s retail, logistics, warehousing and wholesale businesses. The slump sale cost RIL Rs 24,713 crore. With the recent acquisition of Kishore Buyani’s Future Group business, Mukesh Ambani looks to take on global e-commerce giants such as Amazon and Walmart owned Flipkart. With Future Group’s assets, Reliance Retail is posed to become a leader in India’s retail space, leaving Radhakishan Damani owned Avenue Supermarts to a distant second.

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