GIC, TPG To Invest Rs 7,350 Crore In Reliance Retail Ventures
The Singapore government-backed fund and the private equity firm become the sixth and seventh investors in Reliance Retail.
Singapore's GIC and private equity firm TPG will invest a combined Rs 7,350 crore in the retail unit of Reliance Industries Ltd. as billionaire Mukesh Ambani continues to mop up funds for his businesses.
GIC, a global investment firm, will pick 1.22% stake in Reliance Retail Ventures Ltd. for Rs 5,512.5 crore, according to a Reliance statement. TPG will invest Rs 1,837.5 crore for 0.4% in the holding company of India's largest retail chain.
Ambani is replicating the fundraising spree seen in the digital business. He has now brought in six investors in the retail unit, raising Rs 32,197.5 crore by selling 7.1% so far. The other firms that have so far invested in Reliance Retail Ventures are Abu Dhabi-based sovereign fund Mubadala, Silver Lake, General Atlantic, and KKR & Co.
All these firms, apart from Facebook Inc. and Google LLP, earlier invested in Jio Platforms Ltd., bet on Ambani's efforts to build a technology giant that offers data, content and commerce.
GIC and TPG peg the pre-investment equity valuation of Reliance Retail at Rs 4.28 lakh crore, similar to other investors.
Reliance Retail has 11,784 stores across consumer electronics, grocery and general merchandise and fashion and lifestyle. It reported a consolidated turnover of Rs 1,62,936 crore and net profit of Rs 5,448 crore for the year-ended March 31, 2020.
The acquisition of Future Group’s retail and logistics business for Rs 27,513 crore will add 1,736 Big Bazaar and other stores covering close to 28.3 million square feet of retail area across various grocery and fashion segments.