Reliance Retail receives full subscription of Rs 2,069.50 crore from KKR

Reliance Retail Ventures Ltd, the retail subsidiary of Reliance Industries, has received the full subscription amount of Rs 2,069.50 crore from global investment firm KKR, and has allocated 1.71 crore equity shares.

Following the share allotment, KKR's stake in Reliance Retail Ventures Ltd (RRVL) has increased to 1.42 per cent, up from 1.17 per cent.

In a regulatory filing, Reliance Industries said, "Reliance Retail Ventures Ltd today received the subscription amount of Rs 2,069.50 crore from Alyssum Asia Holdings II Pte Ltd (KKR) and allotted 1,71,58,752 equity shares to KKR."

Earlier this month, Reliance Industries announced KKR's investment of Rs 2,069.50 crore in RRVL, the holding company for the retail business of the Mukesh Ambani-led group, for an additional 0.25 per cent stake at a valuation of approximately Rs 8.36 lakh crore.

KKR, founded in 1976, manages approximately $519 billion in assets as of June 30, 2023.

Investment from Qatar Investment Authority 

In another recent investment, RIL received Rs 8,278 crore from the Qatar Investment Authority (QIA) in exchange for around a 1 per cent stake in RRVL, valuing the company at Rs 8.278 lakh crore ($100 billion).

In 2020, RRVL raised Rs 47,265 crore (approximately $6.4 billion) from global private equity funds for a 10.09 per cent stake, valuing the company at over Rs 4.2 lakh crore. This marked the largest fundraising exercise in the sector at that time.

RRVL is aggressively expanding its business through acquisitions and securing franchise rights for leading international brands in India. Additionally, it is investing in scaling up its infrastructure and recently acquired the India business of German retail giant Metro Cash and Carry.

In Reliance Industries' latest annual report, it was reported that Reliance Retail achieved the significant milestone of surpassing one billion transactions, with a registered user base of 249 million. The company operates a network of over 18,500 stores and digital commerce platforms across various sectors, including grocery, consumer electronics, fashion and lifestyle, and pharma consumption.

In FY23, the digital commerce and new commerce businesses of Reliance Retail contributed 18 per cent of its revenue, totalling Rs 2.60 lakh crore. Chairman Mukesh Ambani highlighted the remarkable growth and valuation of Reliance Retail, positioning it among the top four listed entities in India if it were to be listed on stock exchanges. He emphasised that the pace of value creation in the company is unmatched globally.

(With PTI Inputs)