In a statement released on Thursday, India’s biggest Private sector conglomerate Reliance industries said it has completed the sale of 10.09% stake in it’s retail arm Reliance Retail ventures Limited (RRVL) and has successfully bagged Rs. 47,265 Crore from a clutch of investors that include Silverlake Partners, KKR, GIC, TPG and General Atlantic, also sovereign wealth funds Mubadala, ADIA and PIF.
“RRVL has received cumulative subscription amount of Rs 47,265 crore from the following financial partners and allotted 69.27 crore equity shares to them,” the company said in a statement.
The subscription proportion of the investors that took part in the investment rally are as below:
Silverlake Partners bought 2% stake for Rs. 9,375 Crore,
KKR for Rs. 5,550 crore investment clutched 1.19%, GIC and AIDA (Abu Dhabi Investment Authority) each subscribed 1.18% shares for Rs. 5,512 Crore
UAE based Mubadala invested Rs. 6,247.50 Crore against 1.33% stake, whereas Public Investment Fund, the sovereign wealth fund of Saudi Arabia, bought 2.04 percent stake for Rs. 9,555 crore. Apart from these, USA based General Atlantic and TPG put in Rs. 3,675 Crore for 0.78% and Rs. 1,837 Crore against 0.39% stake, respectively.
Reliance Retail Ltd, a subsidiary of RRVL, operates India’s largest, fastest-growing retail business that serves nearly 640 million footfalls at its 12,000 stores across the nation. Its business includes supermarkets, consumer electronics chain stores, cash and carry wholesale business, Online and offline fast-fashion outlets, and online grocery store JioMart.
The new funding is expected to equip Reliance Retail with enough capital to compete with it’s rivals like Walmart, Amazon, Flipkart, in both Online and Offline retail segment.
Earlier this year, Reliance raised a whopping Rs 1.52 lakh crore for it’s Jio Platforms, the group’s telecom and digital services company, from investors that include Facebook, Intel and Google.
“With our focus on new commerce, we are committed to playing a transformational role in the Indian retail sector by empowering millions of merchants and micro, small and medium enterprises,” said Isha Ambani, A director of RRVL and daughter of Mukesh Ambani.