KKR to invest Rs 2,069 Cr in Reliance Retail to hike stake to 1.42%

Reliance Industries Ltd on Monday said global investment firm KKR will invest Rs 2,069.50 crore into its retail arm Reliance Retail Ventures Limited (RRVL) to raise its stake to 1.42% from 1.17%.

The investment is at "a pre-money equity value of Rs 8.361 lakh crore (around $100 billion)", Reliance Industries Ltd said in a regulatory filing.

The deal makes RRVL "among the top four companies by equity value in the country", it added.

KKR's follow-on investment will translate into an additional equity stake of 0.25% in RRVL on a fully diluted basis.

"This, combined with its stake from its investment of Rs 5,550 crore in RRVL in 2020, will take its total equity stake in RRVL to 1.42% on a fully diluted basis," the filing said.

Last week, RIL said it had received Rs 8,278 crore from Qatar Investment Authority (QIA) for around 1stake in RRVL, the retail arm of billionaire Mukesh Ambani-led group.

As per the deal, it has allotted 6.86 crore equity shares of RRVL to QIA.

RRVL is the holding company of the RIL's retail business.

In 2020, RRVL had raised Rs 47,265 crore (around $6.4 billion) from global private equity funds for a 10.09% stake, valuing the company at more than Rs 4.2 lakh crore.

The company has raised funds from Silver Lake, KKR, Mubadala, Abu Dhabi Investment Authority, GIC, TPG, General Atlantic and Saudi Arabia's Public Investment Fund at a valuation of around $57 billion.

RRVL is aggressively expanding its business by acquiring companies and getting franchise rights of leading international brands for the Indian market.

Besides, it is investing in scaling up infrastructure and also acquired the India business of German retail major Metro Cash and Carry.