Reliance Retail Ventures Ltd (RRVL), a subsidiary of US private equity firm General Atlantic Reliance Industries, will buy a 0.84% stake for Rs 3,675 crore, Reliance Industries said in a statement.
RRVL made the official announcement
Reliance Industries Limited and Reliance Retail Ventures Limited (RRVL) today announced that it will invest Rs 3,675 crore in RRVL, a subsidiary of General Atlantic Reliance Industries.
General Atlantic will get 0.84 per cent stake in RRVL
Reliance Retail is valued at Rs 4.285 lakh crore for the deal. In return for an investment of Rs 3,675 crore, General Atlantic will get 0.84 per cent stake in RRVL.
General Atlantic’s second major investment in Reliance
General Atlantic is the second largest investment in Reliance Industries. Earlier, General Atlantic had invested Rs 6,598.38 crore in Reliance Jio, a subsidiary of Reliance Industries.
A company eager to work with Mukesh Ambani
The statement issued by General Atlantic further said that change was needed in the Indian retail system and Reliance Retail has been instrumental in bringing about this change. We look forward to working with Mukesh Ambani’s new Commerce Mission.
Reliance sells 10% stake
Reliance Industries, which is owned by Mukesh Ambani, wants to sell 10 per cent stake in its subsidiary Reliance Retail. Last month, Reliance Industries bought Future Group’s retail and logistics business for Rs 24,713 crore.
Development requires digital capability
Commenting on the MoU with General Atlantic, Mukesh Ambani said that like Reliance Retail, General Atlantic also believes that digital capability is essential for growth and development.
2 big investments in September
Earlier on September 9, US private equity firm Silver Lake announced a 75 7.75 billion stake in Reliance Retail. Then on September 23, KKRA announced the purchase of 1.28 per cent stake in Reliance Retail for Rs 5,500 crore.
Reliance Retail earns crores
Reliance Retail has 12,000 stores in 7,000 cities. Reliance Retail had a revenue of Rs 1.63 lakh crore in the last fiscal.