Reliance Retail raises a total of Rs7,350 cr from GIC, TPG
03 October 2020
A day after Reliance Industries Limited (RIL) and its subsidiary Reliance Retail Ventures Limited (RRVL) announced Rs5,512.5 crore investment by GIC into RRVL, Reliance Industries today said global investment firm TPG also is investing Rs1,837.5 crore into RRVL.
These investments value Reliance Retail at a pre-money equity value of Rs4.285 lakh crore. Post investment, GIC will own 1.22 per cent equity stake in RRVL while TPG’s investment will translate into a 0.41 per ent equity stake in RRVL on a fully diluted basis.
Reliance Retail Limited, a subsidiary of RRVL is currently India's fastest growing and most profitable retail business, claiming close to 640 million footfalls across its 12,000-odd stores nationwide.
Reliance Retail is working on an inclusive strategy of galvanising millions of farmers and micro, small and medium enterprises (MSMEs) with the Indian retail sector to better serve millions of customers.
Reliance Retail, through its New Commerce strategy, has started a ransformational digitalisation of small and unorganised merchants to expand the network to over 20 million of these merchants. This will enable the merchants to use technology tools and an efficient supply chain infrastructure to deliver a superior value proposition to their own customers.
Mukesh Ambani, chairman and managing director of Reliance Industries, welcomed the two investors to the Reliance Retail family.
“GIC is pleased to partner with Reliance through this new investment, which will enable the company to position Reliance Retail for the strong secular growth in India’s retail market. We believe Reliance Retail will continue to use its extensive supply chain and store networks, as well as strong logistics and data infrastructure, to add value to its customers and shareholders,” Lim Chow Kiat, chief executive officer of GIC, 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,” Puneet Bhatia, co-managing partner and country head, India of TPG Capital Asia, said.
TPG is making the investment from its TPG Capital Asia fund.
RIL said both transactions are subject to regulatory and other customary approvals.
Morgan Stanley acted as financial advisor to Reliance Retail and Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal counsels for RIL in both investments.