GIC, TPG to invest Rs 7,350 crore in Reliance Retail

GIC, TPG to invest Rs 7,350 crore in Reliance Retail

Reliance Industries on Saturday said two investors GIC and TPG will invest a total of Rs 7,350 crore in its retail venture at a pre-money equity of Rs 4,285 crore. While GIC will invest Rs 5,512.5 crore for a 1.22 per cent equity stake on a fully diluted basis, TPG will invest Rs 1,837.50 crore for a 0.41 per cent stake at a similar valuation.

Earlier on Thursday, Abu Dhabi-based sovereign investor Mubadala Investment Company said it will invest Rs 6,247.5 crore into Reliance Retail Ventures for a 1.40 per cent stake. On Wednesday, RIL announced that co-investors of Silver Lake and General Atlantic will invest Rs 1,875 crore and Rs 3,675 crore respectively in RRVL.

US buyout firm KKR & Co also announced Rs 5,550 crore investment recently, while Silver Lake itself invested Rs 7,500 crore. Reliance Retail operates India’s largest and most profitable retail business. It serves 640 million footfalls across its 12,000 stores nationwide. The retail unit has reported a consolidated turnover of Rs 659,205 crore, cash profit of Rs 71,446 crore and net profit of Rs 39,880 crore for the year ended March 31.

The fresh deals were announced amid an ET report that suggested that Saudi Arabia’s Public Investment Fund (PIF) and Abu Dhabi Investment Authority (ADIA) are likely to invest about $500 million or Rs 3,700 crore each to acquire a total 51 per cent in the infrastructure investment trust (InvIT) structure formed by Reliance Industries to monetise its fibre optic network assets.

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