New Delhi: Global alternative asset firm TPG will invest Rs 1,837.5 crore to buy 0.41 per cent stake in Reliance Retail Ventures Limited (RRVL), the retail arm of Reliance Industries, a statement by the Indian firm said Saturday.
This investment values Reliance Retail at a pre-money equity value of Rs 4.285 lakh crore.
“TPG’s investment will translate into a 0.41 per cent equity stake in RRVL on a fully diluted basis,” it said.
This is the second investment by TPG in a subsidiary of Reliance Industries, following a Rs 4,546.8 crore investment in Jio Platforms announced earlier this year.
Commenting on the development, Mukesh Ambani, Chairman and Managing Director of Reliance Industries said:”TPG has a proven track record of being a valuable partner to global technology businesses and industry leaders and we look forward to their guidance and support in our journey.”
TPG Co-CEO Jim Coulter said: ”Regulatory changes, consumer demographics and technological disruption are creating seismic shifts across the entire retail value chain in India. In the midst of this transformation, Reliance Industries has utilized technology and scale to position Reliance Retail as an incredibly strong, well-organized, and innovative leader.”
“We are excited to join with them as they seek to create a more inclusive retail industry that allows Kiranas and Indian consumers to benefit from the connectivity, efficiency, and accessibility of the Reliance Retail omnichannel platform,” he said.
Isha Ambani, Director of Reliance Retail, said, “We are delighted to welcome TPG to the Reliance Retail family in our journey of revolutionizing the Indian Retail landscape and improving the economic prospects of millions of merchants and enhancing the consumer experience. TPG’s rich experience will be invaluable to the Reliance Retail mission.”
TPG is making the investment from its TPG Capital Asia fund.
The transaction is subject to regulatory and other customary approvals.
Morgan Stanley acted as financial advisor to Reliance Retail and Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal counsels.
Deloitte Touche Tohmatsu India LLP acted as financial advisor to TPG and Shardul Amarchand Mangaldas & Co. acted as legal counsel to TPG.
PTI