Reliance Retail picks up massive Rs 3,675cr from General Atlantic in latest investment

American growth equity firm General Atlantic will invest Rs 3,675 crore for a 0.84% stake in Reliance Retail, the Indian firm said on Wednesday. This is the second investment by General Atlantic in a subsidiary of Reliance Industries, following a Rs 6,598.38 crore investment in Jio Platforms announced earlier this year.

"This investment values Reliance Retail at a pre-money equity value of Rs 4.285 lakh crore. General Atlantic's investment will translate into a 0.84% equity stake in Retail Retail Ventures Ltd (RRVL) on a fully diluted basis," the company said in a statement. Earlier this month, Silver Lake and KKR & Co. had agreed to invest Rs 7,500 crore and Rs 5,550 crore, respectively, for a 1.75% and 1.28% stake in the retail holding arm.

According to an official statement, KKR has USD 222 billion in assets under management as of June 30, 2020. Silver Lake, a California-based company has more than $60 billion in combined assets under management and committed capital. The US company's other investments include Airbnb, Alibaba, Alphabet’s Verily and Waymo units, Dell Technologies, Twitter, etc. 

Ambani's wealth shoots up 73% 

Meanwhile, the personal net worth of Reliance Industries chairman Mukesh Ambani rose by 73 per cent to Rs 6.58 lakh crore, helping him retain the title of being the richest Indian for the ninth consecutive year with a wider margin, according to a report released on Tuesday.

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Ambani, 63, who has been selling stakes in telecom and retail arms lately leading to a strong performance in the Reliance Industries stock price, is also in the top five at a global level, the report prepared by Hurun in association with IIFL Wealth said.

The rankings come at a time when the COVID-19 pandemic has resulted in a deep economic impact on the lives and fears are being expressed about a K-shaped recovery, which will result in more inequalities in the society.  The list identified 828 Indians who are worth over Rs 1,000 crore as of August 31 and made it to the list of richest Indians.

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(With agency inputs) (Photo credit: PTI)