Silver Lake To Invest An Additional Rs 1,875 Crore In Reliance Retail

Silver Lake Partners will invest an additional Rs 1,875 crore in Reliance Retail Ventures Ltd., a subsidiary of Reliance Industries Ltd., as the retailer continues to raise funds to increase its dominance in India's retail market.

This is over and above last week's investment of Rs 7,500 crore by the U.S.-based private equity fund for a 1.75% stake in the retail arm of India's most valued firm.

This takes their total investment in billionaire Mukesh Ambani's retail business to Rs 9,375 crore for an equity stake of 2.13%, the company said on Sept. 30.

Earlier in the day, General Atlantic said it will pick up 0.84% stake in Reliance Retail for Rs 3,675 crore. Last week, KKR & Co. agreed to invest Rs 5,500 crore for 1.28% stake in the country's largest retailer.

The additional investment by Silver Lake pegs the pre-investment equity valuation of Reliance Retail at Rs 4.28 lakh crore.

Ambani is replicating a funding blitz for the retail unit after selling stakes in Jio Platforms Ltd. as a dozen investors, including Facebook and Google, bet on his efforts to build a technology giant that offers data, content and commerce.

Reliance Retail has a total of 11,784 stores across consumer electronics, grocery and general merchandise and fashion and lifestyle. It reported a consolidated turnover of Rs 1,62,936 crore and net profit of Rs 5,448 crore for the year ended March 2020.

Reliance Retail's acquisition of Future Group's retail and logistics business for Rs 27,513 crore will add 1,736 Big Bazaar and other stores covering close to 28.3 million square feet of retail area across various grocery and fashion segments.