Reliance Industries shares gain nearly 3 per cent as Silver Lake picks stake in Reliance Retail

Reliance Industries

New Delhi: Shares of Reliance Industries closed Wednesday with nearly three per cent gains. This happened after US private equity firm Silver Lake Partners picked up 1.75 per cent stake in the retail arm of Reliance Industries for Rs 7,500 crore.

The stock of India’s most valuable firm jumped 2.57 per cent to close at Rs 2,161.25 on BSE. During the day, it gained 2.85 per cent to Rs 2,167.20. On NSE, it rose by 2.68 per cent to settle at Rs 2,163.55. In terms of volume, 8.51 lakh shares were traded on BSE and 2.55 crore on NSE.

The company’s market valuation was at Rs 13,70,103.80 crore at close of trade on BSE.

“Reliance Industries Limited and Reliance Retail Ventures Ltd (RRVL) announced today that Silver Lake will invest Rs 7,500 crore into RRVL, a subsidiary of Reliance Industries,” the statement said.

This investment values RRVL at a pre-money equity value of Rs 4.21 lakh crore. Silver Lake’s investment will translate into a 1.75 per cent equity stake in RRVL on a fully diluted basis.

This marks the second billion-dollar investment by Silver Lake in a Reliance Industries subsidiary after the USD 1.35 billion investment in Jio Platforms announced earlier this year.

“Reliance Retail Limited, a subsidiary of RRVL, operates India’s largest, fastest growing and most profitable retail business serving close to 640 million footfalls across its about 12,000 stores nationwide,” the statement stated.

 

 

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