KKR set to invest over Rs 2k cr in Reliance Retail to raise stake to 1.42%

KKR stake in RRVL will go to 1.42% from 1.17%

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Private equity firm KKR is set to invest an additional Rs 2,069.5 crore in Reliance Retail Ventures (RRVL) through an affiliate, securing a 0.25 per cent stake on a fully diluted basis.

This investment places RRVL’s pre-money equity value at Rs 8.36 trillion, positioning it among the top four companies in the country by equity value, said the company in its release.

This transaction increases KKR’s investment in oil-to-telecommunications conglomerate Reliance Industries’ retail subsidiary from 1.17 per cent to 1.42 per cent. The global investment firm had previously invested Rs 5,500 crore in 2020 when the retailer raised an aggregate of Rs 47,265 crore at a pre-money equity valuation of Rs 4.21 trillion.

This fundraising effort involved participation from various global investors, including Silver Lake, Mubadala Investment Company, General Atlantic, among others.

In August, RRVL secured Rs 8,278 crore from Qatar Investment Authority (QIA) in exchange for a 0.99 per cent stake in the company on a fully diluted basis. This investment by QIA valued RRVL at a pre-money equity value of Rs 8.27 trillion.

Isha Mukesh Ambani, director at RRVL, expressed her satisfaction with KKR’s continued support, emphasising the “deepening partnership” between the two companies.

She said, “We look forward to continued engagement with KKR and to benefit from its global platform, industry knowledge, and operational expertise in our journey towards driving transformation in the Indian retail sector.”

RRVL, operating through its subsidiaries and associates, boasts India’s largest retail business with an integrated omnichannel network of over 18,500 stores and digital commerce platforms spanning grocery, consumer electronics, fashion and lifestyle, and pharmaceutical consumption baskets.

Joe Bae, co-chief executive officer of KKR, also expressed satisfaction with the extended relationship with RRVL, acknowledging the company’s vision and efforts to empower retailers across India through digitalisation.

“We look forward to continuing to work alongside the Reliance Retail team to support the company’s mission of building a more inclusive Indian retail economy,” he added.