Reliance Retail Ventures Ltd, the retail subsidiary of Reliance Industries, has successfully secured the entire subscription amount of INR 2,069.50 crore from the global investment firm KKR, and in exchange, has allocated 1.71 crore equity shares.
After the allotment of shares, KKR’s ownership stake in Reliance Retail Ventures Ltd has risen to 1.42%, up from its previous holding of 1.17%.
“Reliance Retail Ventures Ltd. today received the subscription amount of INR 2,069.50 crore from Alyssum Asia Holdings II Pte. Ltd. (KKR) and allotted 1,71,58,752 equity shares to KKR,” Reliance Industries said in a regulatory filing on Saturday evening.
Earlier this month, Reliance Industries disclosed KKR’s investment of INR 2,069.50 crore in RRVL, the parent company of the retail operations of the conglomerate led by billionaire Mukesh Ambani, in exchange for an additional 0.25% stake, valuing the company at approximately INR 8.36 lakh crore.
Established in 1976, KKR manages assets totaling around $519 billion as of June 30, 2023.
Earlier this month, RIL obtained INR 8,278 crore from Qatar Investment Authority in exchange for an approximately 1% stake in RRVL, valuing the company at INR 8.278 lakh crore ($100 billion).
In 2020, RRVL secured INR 47,265 crore (approximately $6.4 billion) from international private equity funds in exchange for a 10.09% stake, resulting in a valuation of the company exceeding INR 4.2 lakh crore.
At that time, this represented the most significant fundraising endeavor within the sector.
The company had garnered investments from Silver Lake, KKR, Mubadala, Abu Dhabi Investment Authority, GIC, TPG, General Atlantic, and Saudi Arabia’s Public Investment Fund, valuing it at approximately $57 billion during that period.
RRVL is vigorously expanding its operations through acquisitions and securing franchise rights for prominent international brands in the Indian market.
Moreover, the company is investing in the expansion of its infrastructure and has also acquired the Indian operations of the German retail giant, Metro Cash and Carry.
Last month, in the AGM of Reliance Industries, Chairman Mukesh Ambani said that several marquee global strategic and financial investors have shown strong interest in Reliance Retail.
Addressing shareholders, he had said that if RRVL was listed on stock exchanges, then based on the current valuation, it would be among the top four listed entities in the country.
In less than three years, the valuation of Reliance Retail has doubled and the pace of this value creation is ‘unmatched globally’, Ambani had said.
In its latest annual report, RIL said Reliance Retail had achieved a significant milestone of crossing a billion transactions and its registered user base has grown to 249 million.
It operates a network of over 18,500 stores and digital commerce platforms across grocery, consumer electronics, fashion & lifestyle, and pharma consumption baskets.
In FY23, Reliance Retail’s digital commerce and new commerce businesses contributed 18% of its revenue, which stood at INR 2.60 lakh crore.