Silver Lake picks up 1.75% stake in Reliance Retail for Rs 7,500 cr

New Delhi, September 9

US private equity firm Silver Lake Partners will buy 1.75% stake in billionaire Mukesh Ambani-run Reliance Industries Ltd’s retail arm for Rs 7,500 crore and may be followed by KKR & Co.

Silver Lake will invest Rs 7,500 crore in Reliance Retail Ventures Ltd, a subsidiary of Reliance Industries, for a 1.75% stake, the Indian firm said. “This investment values RRVL at a pre-money equity value of Rs 4.21 lakh crore,” it said.

Second investment in RIL subsidiary

• The investment values Reliance Retail Ventures Ltd — a subsidiary of Reliance Industries — at a pre-money equity value of Rs4.21 lakh crore
• This marks the second billion-dollar investment by Silver Lake in a RIL subsidiary after the $1.35 billion investment in Jio Platforms announced earlier this year
• Sources said KKR may be next in line to make an investment of around $1.5 billion in Reliance Retail.

This marks the second billion-dollar investment by Silver Lake in a RIL subsidiary after the $1.35 billion investment in Jio Platforms announced earlier this year.

The world’s largest tech investor picking up a stake in Reliance Retail cements belief that the firm is set to lead a disruptive, technology-led transformation of the Indian retail sector particularly relevant in post-pandemic India.

Reliance Retail Limited, a subsidiary of RRVL, operates India’s largest, fastest-growing and most profitable retail business spanning supermarkets, consumer electronics chain stores, cash and carry wholesale business, fast-fashion outlets, and online grocery store JioMart. It operates almost 12,000 stores in nearly 7,000 towns.

The investment will add fire to Ambani’s battle for dominance in the retail market that is also being eyed by Jeff Bezos’ Amazon.com and Walmart Inc’s Flipkart.

In May, Reliance launched an online grocery delivery service JioMart. It has tied up with WhatsApp to connect customers with local kirana stores.

After monetising Jio Platforms — which houses the firm’s telecom arm and digital ventures — the richest Indian Mukesh Ambani is roping in investors in the retail business. — PTI