Reliance Industries Ltd. (RIL) recently announced that it has secured a significant investment from global investment firm KKR for its retail arm, Reliance Retail Ventures Limited (RRVL). This investment of Rs. 2,069.50 crore will increase KKR’s stake in RRVL from 1.17 per cent to 1.42 per cent. The deal values RRVL at an impressive Rs. 8.361 lakh crore (approximately US $ 100 billion) before the investment, solidifying its position among the top four companies in India by equity value.
KKR’s additional investment adds 0.25 per cent to its equity stake in RRVL on a fully diluted basis, alongside its previous investment of Rs. 5,550 crore in 2020. This brings KKR’s total equity stake in RRVL to 1.42 per cent on a fully diluted basis. Additionally, RIL also received Rs. 8,278 crore from the Qatar Investment Authority (QIA) in exchange for a 1 per cent stake in RRVL. This transaction involved the allotment of 6.86 crore equity shares of RRVL to QIA.
RRVL’s aggressive expansion strategy involves acquiring companies, obtaining franchise rights for renowned international brands in the Indian market, and investing in infrastructure enhancement.
