Mukesh Ambani's Reliance Retail gets Rs 5,512.5 Cr from GIC and Rs 1,837.5 Cr from TPG

Reliance Retail has picked up its sixth and seven foreign investments in three weeks. Singapore-based GIC and US-based TPG are the latest investors in the company.
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It's raining foreign investments at Reliance IndustriesRetail Ventures Ltd.

The latest to fund Reliance's Rs 4.29 lakh crore retail juggernaut are Singapore-based global investment firm GIC and US-based private equity investor TPG.

The former is picking up a 1.22 percent stake for Rs 5,512.5 crore, while the latter is putting in 0.41 percent for Rs 1,837.5 crore.

The GIC and TPG investments are Reliance Retail's sixth and seventh foreign deals in just three weeks.

RIL Chairman Mukesh Ambani said, "GIC’s global network and track record of long-term partnerships will be invaluable to the transformation story of Indian retail. This investment is a strong endorsement of our strategy and India’s potential... TPG has a proven track record of being a valuable partner to global technology businesses and industry leaders, and we look forward to their guidance and support in our journey.”

Photo: RIL

The investments come within two days of Abu Dhabi state fund Mubadala Capitalputting in Rs 6,247.5 crore for a 1.4 percent stake in the company.

Earlier in the week, US-based private equity firm General Atlantic had invested Rs 3,675 crore for a 0.84 percent stake, and Silver Lake Partners put in an additional Rs 1,875 crore in RIL's retail subsidiary.

This week's deals followed two prior investments in Reliance Retail: Silver Lake's Rs 7,500 crore for a 1.75 percent stake, and KKR's Rs 5,550 crore for a 1.28 percent stake.

Jim Coulter, Co-CEO, TPG Growth, said in a statement,

“Regulatory changes, consumer demographics, and technological disruption are creating seismic shifts across the entire retail value chain in India. In the midst of this transformation, Reliance Industries has utilised technology and scale to position Reliance Retail as an incredibly strong, well-organised, and innovative leader. 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.”

Reliance Chairman Mukesh Ambani

Mumbai-based Reliance Retail will utilise the capital to expand its offline retail (Reliance Fresh) and new commerce (JioMart) operations. It operates 12,000 stores across India, with annual footfalls of 640 million.

Retail contributes about a fourth of RIL's total revenues at present.

Earlier in August, Reliance Retail became India's largest offline retail chain after its Rs 24,713-crore acquisition of Kishore Biyani's Future Retail. Through the deal, Reliance gets ownership of Future's retail and wholesale businesses, including brands BigBazaar, fbb, Foodhall, Central, EasyDay, Nilgiris, and Brand Factory.

Speaking of the investment in India's largest retailer, Lim Chow Kiat, CEO, GIC, said:

“GIC is pleased to partner with Reliance through this new investment, which will enable the company to position Reliance Retail for the strong secular growth in India’s retail market. 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.”

Both deals are subject to customary regulatory approvals.

Edited by Teja Lele Desai