Private equity giant KKR on Monday raised its bet in Reliance Retail Ventures Ltd (RRVL) by investing an additional Rs 2,069.50 crore in the Reliance Industries Ltd (RIL) arm.
Its latest investment values RRVL at Rs 8.36 lakh crore.
KKR’s follow-on purchase will result in the global investment firm acquiring another 0.25 per cent in RRVL.
In 2020, KKR had invested Rs 5,550 crore, and Monday’s investment takes it share in RRVL up to 1.42 per cent, RIL said in a late evening statement on Monday.
Three years ago, KKR was among a clutch of global investors to have put their money in Reliance Retail.
They had invested Rs 47,265 crore that valued Reliance Retail at Rs 4.21 lakh crore — meaning the valuation has nearly doubled in the latest round.
Earlier, Qatar Investment Authority invested Rs 8,278 crore to acquire nearly 1 per cent in RRVL. The transaction had valued the retail subsidiary of RIL at Rs 8.28 lakh crore.
“We are pleased to receive continued support from KKR as an investor in RRVL. 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,” Isha Ambani, director, RRVL, said while commenting on the latest investment from KKR.
“We look forward to continued engagement with KKR and to benefit from their global platform, industry knowledge and operational expertise, in our journey towards driving transformation of the Indian retail sector,’’ she said.
On Monday, shares of RIL ended at Rs 2,474.40, marking a gain of 1.04 per cent over its previous close.
RRVL, through its subsidiaries and associates, operates India’s largest, retail business having nearly 27 crore loyalty customers with an integrated omni-channel network of over 18,500 stores and digital commerce platforms across grocery, consumer electronics, fashion and lifestyle, and pharma consumption baskets.
Reliance Retail has partnerships with brands such as Jimmy Choo, Marks & Spencer and Pret A Manger. It also competes with Amazon and Walmart’s Flipkart.
“We are pleased to extend our relationship with Reliance Retail. Throughout our investment period, we have been impressed by the company’s vision and extensive work to empower retailers through digitalisation, as well as by its resilience and performance in spite of the pandemic,” Joe Bae, co-CEO, KKR, said.
