[Funding alert] Mubadala picks up 1.4 pc stake in Reliance Retail for Rs 6,247.5 cr
Abu Dhabi-based sovereign wealth fund Mubadala Investment Co will invest Rs 6,247.5 crore for a 1.4 percent stake in Reliance Retail, the Indian firm said on Thursday.
This is the second investment by Mubadala in a subsidiary of Reliance Industries. It had previously invested Rs 9,093.60 crore for a 1.85 per cent stake in Jio Platforms.
"The investment values Reliance Retail at a pre-money equity value of Rs 4.285 lakh crore," Reliance said in a statement.
Earlier on Wednesday, US private equity firm Silver Lake Partners confirmed an additional investment of Rs 1,875 crore in the retail arm of Reliance Industries, the Indian firm said in a statement.
"Reliance Industries Limited ('Reliance Industries') and Reliance Retail Ventures Limited ('RRVL') announced today that co-investors of Silver Lake will invest an additional Rs 1,875 crore into RRVL, a subsidiary of Reliance Industries," the statement said.
Commenting on the development, Reliance Industries Chairman and Managing Director Mukesh Ambani said, "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," Ambani added.
This brings the aggregate investment by Silver Lake and its co-investors in RRVL to Rs 9,375 crore, which will translate into a 2.13 percent equity stake in RRVL.
Another US-based private equity firm General Atlantic on Wednesday had announced investing Rs 3,675 crore for a 0.84 percent stake in Reliance Retail.
General Atlantic has a longstanding tradition of backing disruptive entrepreneurs and companies around the world, including Airbnb, Alibaba, Ant Financial, Box, ByteDance, Facebook, Slack, Snapchat, Uber and other global technology leaders.
(Disclaimer: Additional background information has been added to this PTI copy for context)