Reliance’s Retail Arm Receives Rs 7,500 Crore From Silver Lake
Billionaire Mukesh Ambani's Reliance Industries Ltd., said it has received Rs 7,500 crore from the U.S.-based Private Equity firm Silver Lake Partners, which has picked up 1.75% stake in its retail arm.
This comes after the company had announced on September 9, that Silver Lake would be investing Rs 7,500 crore into its arm - Reliance Retail Ventures Ltd.
Reliance Retail Ventures has received the subscription amount of Rs 7,500 crore from SLP Rainbow Holdings Pte Ltd., Reliance Industries said in a regulatory filing today. Following the allotment of equity stake, SLP Rainbow Holdings holds 1.75% of the fully diluted equity share capital of Reliance Retail Ventures, it said.
The investment values RRVL at a pre-money equity value of Rs 4.21 lakh crore. This is the second billion-dollar investment by Silver Lake in a Reliance Industries subsidiary, after it invested $1.35 billion in Jio Platforms earlier this year. Reliance also acquired the retail and logistics businesses of Future Group for Rs 24,713 crore to boost its retail vertical.
Silver Lake was the first U.S. Private Equity firm to invest in Jio after tech giant Facebook took a 9.99% stake in the company for Rs 43,573.62 crore. Silver Lake bought 2.08% in Jio in two tranches for a total of Rs 10,202.55 crore.
It is the global leader in large-scale technology investing. It has more more than $60 billion in combined assets under management and committed capital, along with a focus on the world's great tech and tech-enabled opportunities.
The Private Equity firm’s existing investments include Airbnb, Alibaba, Alphabet's Verily and Waymo units, Dell Technologies, Twitter and numerous other global technology leaders.
Rival private equity groups KKR, Vista and General Atlantic followed Silver Lake to take stakes in Jio. Other notable investors included Google and Abu Dhabi's sovereign wealth fund Mubadala.