The deal will give Mubadala a 1.4% stake, valuing Reliance Retail before the investment at Rs 4.28 lakh crore.
The latest deal has taken the total overseas investments announced in Reliance Retail in the past three weeks to nearly Rs 24,850 crore, for a 5.65% stake, making the company one of the hottest global investment destinations in recent months.
On Wednesday, Reliance announced Rs 5,500 crore of investment in the retail venture — Rs 3,675 crore from General Atlantic and Rs 1,875 crore from Silver Lake.
The new funding from Silver Lake is in addition to the Rs 7,500 crore it had earlier agreed to invest. Reliance had earlier also announced an investment of Rs 5,550 crore from KKR.
These are also the second round of investments by all the four global funds in a Reliance entity. They had invested in Jio Platforms, the digital business of the conglomerate that raised $20 billion earlier this year from global funds and US technology companies Facebook and Google.
They are now buying into India’s burgeoning retail story, where the Mumbai conglomerate is poised for a bigger play with its huge network of brick-and-mortar stores and the newly launched JioMart ecommerce venture.
Reliance Retail has also agreed to acquire the business of rival Future Group, which would help consolidate its control to more than a third of India’s estimated $80 billion annual modern retailing market.
The investments are part of Reliance’s plan to raise Rs 60,000-63,000 crore by selling a 15% stake in the retail venture.
Its plan includes inducting an overseas strategic investor into the company, ET had reported last month. Morgan Stanley was the financial adviser to Reliance Retail for the deal, while Cyril Amarchand Mangaldas and Davis Polk & Wardwell were its legal counsels, the company said in a news release.
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20 Comments on this Story
SN22 days ago
Have they ever tried ordering from the Jiomart website? Kuch DD kiya hai ki nahi??
Hemant Pisat22 days ago
Other Indian business groups are either attacked by internal vultures or plain sleeping on their fates. Great work by Mukesh Ambani, we truly hope he strengthens the vulnerable supply chain at the low end of business pyramid and also generate direct employment than contractual. As contractual employment at any Reliance group companies are being abused by vested interest without ethics.
Nino Kuruvilla22 days ago
Well narrated and informative article