Reliance Retail Ventures Ltd.(RRVL) received the full subscription amount of Rs 2,069.50 crore from global investment firm KKR. Reliance Industries’ retail firm, Reliance Retail, allotted 1.71 crore equity shares for the investment, the parent company revealed in a regulatory filing on Saturday.
After the share allotment, KKR now holds 1.42 per cent stake in the retail company, up from it’s earlier share of 1.17 per cent. Earlier in the month, the parent company announced that KKR will invest Rs 2,069.50 crore in RRVL to gain an additional stake of 0.25 per cent at a valuation of nearly Rs 8.36 lakh crore, reported PTI. KKR, founded in 1976, holds nearly $519 billion in assets under management, as of June 30, 2023, the report stated.
Notably, earlier this month Reliance Industries received an investment worth Rs 8,278 crore from the Qatar Investment Authority (QIA) for about 1 per cent stake in RRVL. Back in 2020, RRVL raised Rs 47,265 crore (about $6.4 billion) from global private equity funds for a 10.09 per cent stake, valuing the company over Rs 4.2 lakh crore. This turned out to be the largest fundraising exercise in the sector at the time. The retail wing of Mukesh Ambani-led Reliance Industries was successful in raising funds from Silver Lake, KKR, Mudadala, Abu Dhabi Investment Authority, GIC, TPG, General Atlantic, and Saudi Arabia’s Public Investment Fund. These investments came at a valuation of nearly $57 billion at the time.
Notably, RRVL has been actively expanding it’s business by acquiring companies and securing franchise rights from major global brands for India. Further, the company invested in enhancing it’s infrastructure and also bought the India business of German retail giant Metro Cash and Carry.
During it’s annual general meeting last month, Reliance Industries Chairman, Mukesh Ambani, announced that various marquee global strategic and financial investors exhibited interest in Reliance Retail. Ambani stated that based on the current evaluation, RRVL would be counted among the top four listed entities in the country if it was listed on the stock exchanges. He also noted in his address that the company’s valuation doubled in less than three years and this momentum of growth remained unmatched globally.
The parent company announced in the AGM that Reliance Retail today operates a network of more than 18,500 stores and digital commerce platforms across sectors like consumer electronics, grocery, pharmaceuticals, and more. Further, RRVL’s registered user base stands at 249 million and for the fiscal year 2022-23, the company’s digital commerce and new commerce businesses added 18 per cent to the revenue.