RIL advances after PE fund Silver Lake buys 1.75% stake in Reliance Retail

Reliance Industries (RIL) gained 0.94% to Rs 2126.90 after the company said Silver Lake will invest Rs 7,500 crore in Reliance Retail Ventures at an equity value of Rs 4.21 lakh crore.

Silver Lake's investment will translate into a 1.75% equity stake in Reliance Retail Ventures Limited (RRVL) on a fully diluted basis, RIL said in a BSE filing made during market hours today.

This marks the second billion dollar investment by Silver Lake in a Reliance Industries subsidiary after the $1.35 billion investment in Jio Platforms announced earlier this year. RRVL operates a retail business serving close to 640 million footfalls across its approximately 12,000 stores nationwide.

With more than $60 billion in combined assets under management and committed capital and a focus on the world's great tech and tech-enabled opportunities, Silver Lake is engaged in large-scale technology investing.

Commenting on the transaction with Silver Lake, Mukesh Ambani, chairman and managing director, Reliance Industries, said, "I am delighted to extend our relationship with Silver Lake to our transformational efforts of building an inclusive partnership with millions of small merchants while providing value to Indian consumers across the country in the Indian retail sector. 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."

RIL is India's largest private sector company. Its activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and digital services.

The conglomerate reported a 31% jump in consolidated net profit to Rs 13,248 crore in Q1 June 2020 compared with Rs 10,141 crore in the corresponding period of last year. Consolidated total income for the quarter stood at Rs 95,626 crore, down 42.11% compared with Rs 165,199 crore year-on-year.

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