KKR picks up 1.28% stake in Reliance Retail for Rs. 5550 Crore, second global investment after Silver Lake

Mumbai: After US-based Silver Lake, another global investment firm KKR has picked up 1.28 per cent stake for Rs. 5550 Crore in Reliance Retail ventures Limited (RRVL), a subsidiary of Reliance Industries (RIL).

“ This investment values Reliance Retail at a pre-money equity value ofRs. 4.21 lakh crore. KKR’s investment will translate into a 1.28% equity stake in RRVL on a fully diluted basis” RIL said in a regulatory filing.

This is the second investment by KKR in a RIL subsidiary following theRs.11,367 crore investment in Jio Platforms announced last May.

This is also the second stake-buy by a global investment firm in RRVL after Silver Lake’s Rs.7500 Crore investment for a stake of 1.75 per cent.

“I am pleased to welcome KKR as an investor in Reliance Retail Ventures as we continue our onward march to growing and transforming the Indian Retail ecosystem for the benefit of all Indians. KKR has a proven track record of being a valuable partner to industry-leading franchises and has been committed to India for many years. We look forward to working with KKR’s global platform, industry knowledge and operational expertise across our digital services and retail businesses” : Mukesh Ambani, Chairman and Managing Director of Reliance Industries.

Reliance Retail operates India’s largest, fastest growing and most profitable retail business serving close to 640 million footfalls across its 12,000+ stores nationwide.

Founded in 1976, KKR has $222 billion in assets under management as of June 30, 2020 and a long history of building leading global enterprises. The investment firm established its first of eight Asia offices in 2005 and the firm currently has approximately $5.1 billion in private equity investments across more than 15 Indian companies, including Jio Platforms, JB Chemicals, Max Healthcare, Eurokids International and Ramky Enviro Engineers.