On Thursday, Reliance announced that Mubadala Investment Co, based in Abu Dhabi, the sovereign wealth fund would invest 6,247.5 Crore INR in Reliance Retail (1) for a 1.4% stake. It is the second investment by the firm in the Reliance Industries subsidiary. Previously, it had invested 9,093.60 Crore INR for a 1.85% stake in Jio Platforms.
The Indian firm stated that with the new investment from Mubadala values Reliance Retail at 4.285 Lakh Crore INR at a pre-money equity value. Previously on Wednesday, Silver Lake Partners, the US’s private equity firm, announced an additional investment of 1,875 Crore INR in the firm.
The company stated that the Silver Lake co-investors would additionally invest 1,875 Crore INR in Reliance Retail Ventures Limited, a Reliance Industries subsidiary.
Reliance Retail Aiming for Retail Revolution in India
While commenting on the latest development, the Chairman and Managing Director of Reliance Industries, Mukesh Ambani, stated that the Silver Lake and co-investors are their valued partners. We are together on the journey to transform the retail sector in India to benefit all Indians.
He added that the team is delighted to have their support and confidence. The relationship would benefit our global technology investing and their valued network for the Indian Retail revolution.
The additional investment from Silver Lake is s a strong indication of the Indian Retail tremendous potential and capabilities. The move is bringing the total investment of Silver Lake and its co-investors in Reliance Retail to 9,375 Crore INR. It will translate into a 2.13% equity stake.
On Wednesday, another private equity firm, based in the US, the General Atlantic had stated its investment of 3,675 Crore INR for 0.84% stake in Reliance Retail.
Notably, General Atlantic has a long tradition of backing groundbreaking entrepreneurs and businesses across the globe. It includes Airbnb, Ant Financial, Alibaba, Box, Facebook, ByteDance, Slack, Uber, Snapchat, and other global tech leaders.