New Delhi: Reliance Industries Limited and Reliance Retail Ventures Limited (RRVL) announced on Saturday that global investment firm TPG will invest Rs 1,837.5 crore into RRVL, a subsidiary of Reliance Industries.
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. This marks the second investment by TPG in a subsidiary of Reliance Industries, following a Rs 4,546 crore investment in Jio Platforms announced earlier this year.
This is the second investment announced in half an hour by Reliance Retail Ventures around midnight, the earlier one being by GIC of Singapore. Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said: "I am pleased to welcome TPG as valued investors in Reliance Retail Ventures mission of growing and transforming the Indian Retail ecosystem for the benefit of all Indians. 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."
Jim Coulter, Co-CEO, TPG, 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."
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 consumer experience. TPG's rich experience will be invaluable to the Reliance Retail mission."
Puneet Bhatia, Co-Managing Partner and Country Head, India of TPG Capital Asia, said: "There is a significant opportunity to transform the Indian retail ecosystem for the better. Through their New Commerce initiative, Reliance Retail continues to lead the industry by creating a retail platform that meets the demands of a new generation of Indian consumers. We are excited to work with Reliance Industries as they reimagine the retail experience across the value chain."
TPG is making the investment from its TPG Capital Asia fund. The transaction is subject to regulatory and other customary approvals.
GIC to invest Rs 5,512 crore in Reliance Retail Ventures
Reliance Industries Limited and Reliance Retail Ventures Limited (RRVL) announced on Friday that Singapore's GIC will invest Rs 5,512.5 crore into RRVL, a subsidiary of Reliance Industries.
This investment values RRVL at a pre-money equity value of Rs 4.285 lakh crore. GIC's investment will translate into a 1.22 per cent equity stake in RRVL on a fully diluted basis.
Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said: "It gives me great pleasure to welcome GIC to the Reliance Retail family. I am delighted that GIC, with its track record of close to four decades of successful long-term value investing across the world, is partnering with Reliance Retail in its mission to transform the Indian retail landscape. GIC's global network and track record of long-term partnerships will be invaluable to the transformation story of Indian Retail. This investment is a strong endorsement of our strategy and India's potential."
Lim Chow Kiat, Chief Executive Officer, GIC, said: "GIC is pleased to partner with Reliance through this new investment, which will enable the company to position Reliance Retail for the strong secular growth in India's retail market. We believe Reliance Retail will continue to use its extensive supply chain and store networks, as well as strong logistics and data infrastructure, to add value to its customers and shareholders."
GIC is a leading global investment firm established in 1981 to manage Singapore's foreign reserves. A disciplined long-term value investor, GIC is uniquely positioned for investments across a wide range of asset classes, including equities, fixed income, private equity, real estate and infrastructure. GIC has investments in over 40 countries and has been investing in emerging markets for more than two decades.