Reliance Retail Closes Rs 47,000 Crore Fundraising, 10.09% Stake Sold
Reliance Retail Ventures Ltd. has completed fundraising in the current round as it sold Rs 47,265 crore worth of stake to a clutch of investors who are betting on billionaire Mukesh Ambani's triple play of content, carriage and commerce.
The retail unit of Reliance Industries Ltd. sold 10.09% to nine global financial investors, including Silver Lake Partners and General Atlantic, in two months.
“With our focus on new commerce, we are committed to playing a transformational role in the Indian retail sector by empowering millions of merchants and micro, small and medium enterprises,” Isha Ambani, director of Reliance Retail Ventures, was quoted as saying in a statement.
Morgan Stanley was the financial adviser to Reliance Retail Ventures, BofA Securities, was the additional financial adviser and Cyril Amarchand Mangaldas and Davis Polk & Wardwell were legal counsel.
Ambani’s stake sale in the retail business replicated the fund raising blitz at digital assets under Jio Platforms Ltd., which saw investors including Facebook Inc. and Google plough money. Some investors acquired stake in both retail and digital units.
Reliance Retail, India’s largest retail chain, has over 12,000 stores across consumer electronics, grocery and general merchandise and fashion and lifestyle. It reported a consolidated turnover of nearly Rs 1.63 lakh crore ($21.7 billion) and net profit of Rs 5,448 crore ($726.4 million) for the year ended March. The acquisition of Future Group’s retail and logistics business for Rs 27,513 crore will add 1,736 Big Bazaar and other stores.