Private equity firm KKR will invest ₹2,069.5 crore in Reliance Retail Ventures for a 0.25 per cent stake, valuing the retail arm of Reliance Industries at ₹8.36-lakh crore, said a company statement.
This is a follow-on investment by KKR and takes its stake in RRVL to 1.42 per cent from 1.17 per cent earlier. The PE firm had invested ₹5,550 crore in the retail venture in 2020 when RRVL had raised ₹47,265 crore three years ago from a clutch of global investors at an equity value of ₹4.2-lakh crore.
Earlier this month, sovereign wealth fund Qatar Investment Authority had invested ₹8,278 crore in RRVL for a near 1 per cent stake.
The RIL group has big plans in the retail sector, where it is following a strategy of both organic and inorganic growth. It has made big-ticket acquisitions in the past and plans more acquisitions in the future.
RRVL operates over 18,500 stores across various formats, including grocery, consumer electronics, fashion, lifestyle, and pharma segments.
KKR is also an investor in Jio Platforms, which runs the digital services in the RIL group.
“We highly value our deepening partnership with KKR, and their latest investment in RRVL after their previous investment further reinforces their strong belief in RRVL’s vision and capabilities,” said director Isha Ambani in a statement. She added that the company would look forward to continued engagement with KKR.
KKR’s investment in RRVL is primarily through the PE firm’s Asian Fund IV.
RRVL reported a consolidated turnover of ₹2.6 lakh crore and net profit of ₹9,181 crore in FY23.
