NEW DELHI: US private equity firm Silver Lake will invest Rs 7,500 crore in Reliance Retail for around 1.75 per cent stake in the company.
Shares of RIL traded 1.07 per cent higher at Rs 2129.60 after the announcement, while the benchmark BSE Sensex was down 0.49 per cent at 38,179.
“Reliance Industries and Reliance Retail Ventures (RRVL) announced today that Silver Lake will invest Rs 7,500 crore into RRVL, a subsidiary of Reliance Industries. 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,” RIL said in a release.
The transaction is subject to regulatory and other customary approvals.
“We believe technology will be key to bringing the much-needed transformation in this sector so that various constituents of the retail ecosystem can collaborate to build inclusive growth platforms. Silver Lake will be an invaluable partner in implementing our vision for Indian Retail,” said Mukesh Ambani, Chairman and Managing Director of Reliance Industries.
Egon Durban, Co-CEO and Managing Partner of Silver Lake, said, “Reliance’s New Commerce strategy could become the disruptor of this decade. We are thrilled to have been invited to partner with Reliance in their mission for Indian Retail.”
Silver Lake is the global leader in technology investing, with over $40 billion in combined assets under management. The company has a terrific track record of investing in some of the largest and successful tech companies globally such as Twitter, Airbnb, Alibaba, Dell Technologies, ANT Financials, Twitter, Alphabet’s Waymo and Verily amongst others.