India Billionaire Mukesh Ambani’s Reliance Industries Ltd announced to raise Rs 7,350 crore from two investors — Singapore’s sovereign wealth fund GIC and Global alternative asset firm TPG. The firm will sell a stake in group’s retail arm.
Through two separate deals, Reliance Industries will sell 1.63 per cent stake in Reliance Retail Ventures Limited (RRVL).
GIC will invest Rs 5,512.5 crore to buy 1.22 per cent share in RRVL. It said TPG will invest Rs 1,837.5 crore to buy 0.41 per cent stake in RRVL.
The investments value Reliance Retail at a pre-money equity value of Rs 4.285 lakh crore. In less than three days, Reliance Industries has entered into five deals to sell stake in RRVL.
Earlier, On Thursday, RIL had announced Abu Dhabi-based sovereign wealth fund Mubadala Investment Co will invest Rs 6,247.5 crore to buy a 1.4 per cent stake in its retail arm.
On Wednesday, global private equity firm General Atlantic picked up a 0.84 per cent stake in the company for Rs 3,675 crore. Also, US PE investor Silver Lake made a second investment of Rs 1,875 crore, taking its total fund infusion in Reliance Retail to Rs 9,375 crore for a 2.13 per cent stake. KKR had previously taken a 1.28 per cent stake in the firm for Rs 5,550 crore.
GIC Chief Executive Officer Lim Chow Kiat said: “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.”