NEW DELHI: US-based private equity firm Silver Lake’s co-investors will put an additional Rs 1,875 crore into Reliance Retail Ventures Limited (RRVL). RRVL is a subsidiary of Reliance Industries (RIL) which is controlled by Asia’s richest person Mukesh Ambani.
The fresh investment brings the aggregate net by Silver Lake and its co-investors in RRVL to Rs 9,375 crore that 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, RIL said.
Mukesh Ambani, chairperson and managing director of RIL, said, “Silver Lake and its co-investors are valued partners on our journey to transform Indian Retail for the benefit of all Indians. We are pleased to have their confidence and support, as well as the benefit of their leadership in global technology investing and their valued network of relationships for the Retail revolution in India. Silver Lake’s additional investment is a strong endorsement of the tremendous potential of Indian Retail and the capabilities of Reliance Retail.”
The transaction is subject to regulatory and other customary approvals.
Egon Durban, co-CEO and MD of Silver Lake, said, “We are delighted to increase our exposure and bring more of our co-investors into this unmatched opportunity. 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.”