Reliance Industries announced that Singapore sovereign wealth fund GIC and global private equity firm TPG Capital would invest nearly $1 billion in its retail arm, Reliance Retail Ventures. GIC will invest Rs 5,512.5 crore and TPG will invest Rs 1,837.5 crore in the retail arm. In a regulatory filing, Reliance said that the firms would pick 1.22 per cent equity stake and 0.41 per cent equity stake in RRVL respectively.
The Mukesh Ambani-helmed oil-to-telecom conglomerate said that the investments value Reliance Retail at a pre-money equity value of $58.47 billion.
Reliance has already secured more than $2 billion in investments from global investors including General Atlantic, Abu Dhabi state fund Mubadala and Silver Lake Partners for the retail arm. This investment is TPG's second in Reliance after its $598 million investment in Reliance's Jio Platforms. Mukesh Ambani has approached Jio Platforms investors to pick stakes in Reliance Retail.
"It gives me great pleasure to welcome GIC to the Reliance Retail family. I am delighted that GIC, with its track record of close to four decades of successful long-term value investing across the world, is partnering with Reliance Retail in its mission to transform the Indian retail landscape. GIC's global network and track record of long-term partnerships will be invaluable to the transformation story of Indian Retail. This investment is a strong endorsement of our strategy and India's potential," said Mukesh Ambani. "I am pleased to welcome TPG as valued investors in Reliance Retail Ventures mission of growing and transforming the Indian Retail ecosystem for the benefit of all Indians. TPG has a proven track record of being a valuable partner to global technology businesses and industry leaders and we look forward to their guidance and support in our journey," he added.
Isha Ambani, Director of Reliance Retail, said, "We are delighted to welcome TPG to the Reliance Retail family in our journey of revolutionizing the Indian Retail landscape and improving the economic prospects of millions of merchants and enhancing consumer experience. TPG's rich experience will be invaluable to the Reliance Retail mission."
Reliance Retail is already India's biggest retailer with around 12,000 stores. It acquired Future Group's retail business in a $3.38 billion deal.