NE BUSINESS BUREAU
MUMBAI, OCT 3
Reliance Industries Limited (RIL) on Saturday announced that two global investment firms GIC and TPG will invest ₹ 5,512.5 crore and ₹ 1,837.5 crore, respectively, into its retail arm Reliance Retail Ventures Limited (RRVL). Both GIC and TPG investment will translate 1.22% equity stake and a 0.41% equity stake in RRVL respectively on a fully diluted basis, a RIL release said.
Reliance Industries Limited (Reliance Industries) and Reliance Retail Ventures Limited (RRVL) announced that GIC will invest ₹ 5,512.5 crore into RRVL, a subsidiary of Reliance Industries. This investment values RRVL at a pre-money equity value of ₹ 4.285 lakh crore. GIC’s investment will translate into a 1.22% equity stake in RRVL on a fully diluted basis.
Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said, “It gives me great pleasure to welcome GIC to the Reliance Retail family. I am delighted that GIC, with its track record of close to four decades of successful long-term value investing across the world, is partnering with Reliance Retail in its mission to transform the Indian retail landscape. GIC’s global network and track record of long-term partnerships will be invaluable to the transformation story of Indian Retail. This investment is a strong endorsement of our strategy and India’s potential.
Lim Chow Kiat, Chief Executive Officer, GIC, 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. We believe Reliance Retail will continue to use its extensive supply chain and store networks, as well as strong logistics and data infrastructure, to add value to its customers and shareholders.”
Reliance Industries Limited and RelianceRetail Ventures Limited (RRVL) announced today that global investment firm TPG will invest ₹ 1,837.5 crore into RRVL, a subsidiary of Reliance Industries
It will be the second investment by TPG in a subsidiary of Reliance Industries, following a ₹ 4,546.8 crore investment in Jio Platforms announced earlier this year.
TPG is a leading global alternative asset firm founded in 1992 with more than $83 billion of assets under management across a wide range of asset classes, including private equity, growth equity, real estate, and public equity. Over TPG’s nearly 30-year history, the firm has built an ecosystem made up of hundreds of portfolio companies and a value-added network of professionals, executives, and advisors around the world. By offering institutional support and global resources, TPG enables these companies to reach their full potential and unlock greater possibilities.
TPG is making the investment from its TPG Capital Asia fund.
Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said, “I am pleased to welcome TPG as valued investors in Reliance Retail Ventures mission of growing and transforming the Indian Retail ecosystem for the benefit of all Indians. TPG has a proven track record of being a valuable partner to global technology businesses and industry leaders and we look forward to their guidance and support in our journey.”
The transaction is subject to regulatory and other customary approvals.
Morgan Stanley acted as financial advisor to Reliance Retail and Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal counsels. Deloitte Touche Tohmatsu India LLP acted as financial advisor to TPG and Shardul Amarchand Mangaldas & Co. acted as legal counsel to TPG.
Jim Coulter, Co-CEO, TPG, said, “Regulatory changes, consumer demographics and technological disruption are creating seismic shifts across the entire retail value chain inIndia. In the midst of this transformation, Reliance Industries has utilized technology and scale to position Reliance Retail as an incredibly strong, well-organized, and innovative leader. We are excited to join with them as they seek to create a more inclusive retail industry that allows Kiranas and Indian consumers to benefit from the connectivity, efficiency, and accessibility of the Reliance Retail omnichannel platform.”
Isha Ambani, Director of Reliance Retail, said, “We are delighted to welcome TPG to the Reliance Retail family in our journey of revolutionizing the Indian Retail landscape and improving the economic prospects of millions of merchants and enhancing consumer experience. TPG’s rich experience will be invaluable to the Reliance Retail mission.”
Puneet Bhatia, Co-Managing Partner and Country Head, India of TPG Capital Asia, said, “There is a significant opportunity to transform the Indian retail ecosystem for the better. Through their New Commerce initiative, Reliance Retail continues to lead the industry by creating a retail platform that meets the demands of a new generation of Indian consumers. We are excited to work with Reliance Industries as they reimagine the retail experience across the value chain.”
