US-based private equity firm Silver Lake will invest Rs. 7,500 crore in Reliance Retail Ventures Limited (RRVL). With this investment, Silver Lake gets a 1.75 percent equity stake in Reliance Retail on a fully diluted basis.
The investment values Reliance Retail at a pre-money equity value of Rs. 4.21 lakh crore. The development comes merely a few weeks after Reliance Retail’s interest in Future Group. Reliance Retail acquired Future Group’s retail, wholesale, logistics, and warehousing business for a whopping Rs. 24,713 crore.
The press release notes that the transaction is subject to regulatory and other customary approvals. Morgan Stanley acted as financial advisor and Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal counsels to Reliance Retail. Meanwhile, Latham & Watkins and Shardul Amarchand Mangaldas & Co acted as legal counsels for Silver Lake.
“I am delighted to extend our relationship with Silver Lake to our transformational efforts of building an inclusive partnership with millions of small merchants while providing value to Indian consumers across the country in the Indian retail sector,” said Reliance Industries Chairman Mukesh Ambani.
“We believe technology will be key to bringing the much-needed transformation in this sector so that various constituents of the retail ecosystem can collaborate to build inclusive growth platforms. Silver Lake will be an invaluable partner in implementing our vision for Indian Retail”, he added.
Silver lake has more than $60 billion in combined assets across leading tech companies including Airbnb, Alibaba, Alphabet’s Verily and Waymo, Dell Technologies, and Twitter. However, this is not the first Silver Lake investment in a Reliance Industries subsidiary. In May, Silver Lake invested Rs. 5,655.75 crore in Jio Platforms Limited, followed by an additional Rs. 4,546.80 crore in June.