RIL says GIC, TPG to invest Rs 7,350 cr in Reliance Retail

Reliance Industries (RIL) on Saturday (3 October) said two investors GIC and TPG will invest a total of Rs 7,350 crore in its retail venture, Reliance Retail Ventures Limited (RRVL).

Global investment firm TPG will invest Rs 1,837.50 crore into RRVL. This investment values Reliance Retail at a pre-money equity value of Rs 4.285 lakh crore. TPG's investment will translate into a 0.41% equity stake in RRVL on a fully diluted basis.

Meanwhile, GIC will invest Rs 5,512.5 crore into RRVL. This investment values RRVL at a pre-money equity value of Rs 4.285 lakh crore. GIC's investment will translate into a 1.22% equity stake in RRVL on a fully diluted basis.

Reliance Retail, a subsidiary of RRVL, operates retail business serving close to 640 million footfalls across its about 12,000 stores nationwide.

TPG is a leading global alternative asset firm founded in 1992 with more than $83 billion of assets under management across a wide range of asset classes, including private equity, growth equity, real estate and public equity.

GIC is a leading global investment firm established in 1981 to manage Singapore's foreign reserves. GIC has investments in over 40 countries and has been investing in emerging markets for more than two decades.

RIL, after market hours on 1 October 2020, announced Mubadala Investment Company (Mubadala), the Abu Dhabi-based sovereign investor, will invest Rs 6,247.5 crore RRVL. The investment values Reliance Retail at a pre-money equity value of Rs 4.285 lakh crore. Mubadala's investment will translate into a 1.40% equity stake in RRVL on a fully diluted basis.

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.

Shres of RIL gained 0.09% to Rs 2227.05. It traded in the range of 2226 and 2249 so far during the day.

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