Global investors bank on Indian prosperity
Reliance Industries continues to win heavyweight investors backed by the growing potential of the Indian market in the coming years.
On 3 Oct 2020, RIL announced global investor TPG’s Rs.1,837.5 crore investment in subsidiary Reliance Retail Ventures Limited (RRVL).
This investment values Reliance Retail at a pre-money equity value of Rs.4.285 lakh crore. TPG’s investment will translate into a 0.41% equity stake in RRVL on a fully diluted basis.
This marks the second investment by TPG in a subsidiary of Reliance Industries, following a Rs.4,546.8 crore investment in Jio Platforms announced earlier this year.
On 2 Oct Reliance announced Singapore investor GIC’s Rs.5,512.5 crore investment in RRVL. This investment values RRVL at a pre-money equity value of Rs.4.285 lakh crore. GIC’s investment will translate into a 1.22% equity stake in RRVL on a fully diluted basis.
On 1 Oct, Reliance won another round of investment from Abu Dhabi-based Mubadala Investment Company. Mubadala is investing Rs.6,247.5 crore (AED 3.1 billion) into RRVL.
Mubadala’s investment will translate into a 1.40% equity stake in RRVL on a fully diluted basis.
This marks the second significant investment by Mubadala in a Reliance Industries subsidiary after the US$1.2 billion investment in Jio Platforms announced earlier this year.
On 30 September, Reliance won General Atlantic’s investment of Rs.3,675 crore into RRVL.
General Atlantic’s investment will translate into a 0.84% equity stake in RRVL on a fully diluted basis.
This marks the second investment by General Atlantic in a subsidiary of Reliance Industries, following an Rs.6,598.38 crore investment in Jio Platforms announced earlier this year.
Also, on 30 September, Reliance said that co-investors of Silver Lake will invest an additional Rs.1,875 crore into RRVL.
This brings the aggregate investment by Silver Lake and its co-investors in RRVL to Rs.9,375 crore, which will translate into a 2.13% equity stake in RRVL on a fully diluted basis.
This latest investment values Reliance Retail at a pre-money equity value of Rs.4.285 lakh crore.
Such flow of investments into an Indian premium group in a week reflects the international investors’ confidence in and high expectations from the Indian market of 1.3 billion people.
Mukesh Ambani, Chairman and Managing Director of Reliance Industries, welcomed the investors as he continues seeking partners with global expertise for the benefit of all Indians.
“Regulatory changes, consumer demographics and technological disruption are creating seismic shifts across the entire retail value chain in India,” said TPG Co-CEO Jim Coulter.
“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,” said Coulter on making the investment commitment.
TPG is a leading global alternative asset firm founded in 1992 with more than US$83 billion of assets under management across a wide range of asset classes, including private equity, growth equity, real estate and public equity.
“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,” said GIC CEO Lim Chow Kiat.
“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,” said Lim.
The Reliance Retail Ventures’ vision is the inclusive transformation of
India’s consumer economy through the power of digitization, creating opportunities and market access for millions of small businesses across the country, Khaldoon Al Mubarak, Managing Director and Group CEO, Mubadala Investment Company.
“We are committed to supporting the company’s continuing development,” he underlined.
“General Atlantic is thrilled to be backing Mukesh’s New Commerce mission to drive substantial positive change in the country’s retail sector, which goes hand-in-hand with his vision to enable a Digital India through the work of Jio Platforms,” said Bill Ford, Chief Executive Officer of General Atlantic.
“General Atlantic shares Reliance Industries’ foundational belief in the power of technology to foster transformative growth, and we are excited by the immense potential of the full Reliance ecosystem.
“We are honored to again be partnering with the Reliance team to meaningfully accelerate India’s position in the global digital economy,” said Ford.
“We are delighted to increase our exposure and bring more of our co-investors into this unmatched opportunity,” added Egon Durban, Co-CEO and Managing Partner of Silver Lake.
“The continued investment momentum over the last few weeks is proof of the compelling vision and business model of Reliance Retail – and underscores the tremendous potential of the transformative New Commerce initiative,” said Durban. #investments #banks #retails /fiinews.com
