Reliance Industries Limited and Reliance Retail Ventures Limited (RRVL) announced on Saturday that global investment firm TPG will invest Rs 1,837.5 crore into RRVL, a subsidiary of Reliance Industries.
This investment values Reliance Retail at a pre-money equity value of Rs 4.285 trillion. TPG's investment will translate into a 0.41 per cent equity stake in RRVL on a fully diluted basis. This marks the second investment by TPG in a subsidiary of Reliance Industries, following a Rs 4,546 crore investment in Jio Platforms announced earlier this year.
This is the second investment announced in half an hour by Reliance Retail Ventures around midnight, the earlier one being by GIC of Singapore. Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said: "I am pleased to welcome TPG as valued investors in Reliance Retail Ventures mission of growing and transforming the Indian Retail ecosystem for the benefit of all Indians. 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."
Jim Coulter, Co-CEO, TPG, said: "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 utilized technology and scale to position Reliance Retail as an incredibly strong, well-organized, 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."
Isha Ambani, Director of Reliance Retail, said: "We are delighted to welcome TPG to the Reliance Retail family in our journey of revolutionizing the Indian Retail landscape and improving the economic prospects of millions of merchants and enhancing consumer experience. TPG's rich experience will be invaluable to the Reliance Retail mission."
Puneet Bhatia, Co-Managing Partner and Country Head, India of TPG Capital Asia, said: "There is a significant opportunity to transform the Indian retail ecosystem for the better. Through their New Commerce initiative, Reliance Retail continues to lead the industry by creating a retail platform that meets the demands of a new generation of Indian consumers. We are excited to work with Reliance Industries as they reimagine the retail experience across the value chain."
TPG is making the investment from its TPG Capital Asia fund. The transaction is subject to regulatory and other customary approvals.