KKR To Invest Rs 2,069.50 Crore In Reliance Retail Ventures Limited

Reliance Retail Ventures Limited (“RRVL”) announced that global investment firm KKR, will invest Rs 2,069.50 crore into RRVL, a subsidiary of Reliance Industries Limited, through an affiliate. This investment values RRVL at a pre-money equity value of Rs 8.361 lakh crore. This will bring the company among the top four companies by equity value in the country.

KKR’s follow-on investment will translate into an additional equity stake of 0.25 per cent in RRVL on a fully-diluted basis. This, combined with its stake from its investment of Rs 5,550 crore in RRVL in 2020, will take its total equity stake in RRVL to 1.42 per cent on a fully-diluted basis. The previous fund-raise round by RRVL in 2020 from various global investors of an aggregate amount of Rs 47,265 crore was done at a pre-money equity value of Rs 4.21 lakh crore.

KKR’s investment comes primarily from its Asian Fund IV. The transaction is subject to regulatory and other customary approvals. Morgan Stanley acted as financial advisor to Reliance Retail Ventures Limited and Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal counsels. 

Ms Isha Mukesh Ambani, director, Reliance Retail Ventures Limited, said, “We are pleased to receive continued support from KKR as an investor in Reliance Retail Ventures Limited. We highly value our deepening partnership with KKR, and their latest investment in RRVL after their previous investment further reinforces their strong belief in RRVL’s vision and capabilities.”

Mr Joe Bae, co-CEO, KKR, said, “We are pleased to extend our relationship with Reliance Retail Ventures Limited. Throughout our investment period in Reliance Retail, we have been impressed by the company’s vision and extensive work to empower retailers across India through digitalization.”

Reliance is a private sector company, with a consolidated revenue of Rs 9,74,864 crore, cash profit Rs 1,25,951 crore and net profit of Rs 73,670 crore for the year ended March 31, 2023. RRVL reported a consolidated turnover of Rs 260,364 and net profit of Rs 9,181 crore for the year ended March 31, 2023. 

KKR is a global investment firm that offers alternative asset management as well as capital markets and insurance solutions. It sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds.