After Jio, KKR invests Rs 5,550 crore in Reliance Retail, get 1.28% stake

On Wednesday, Reliance Industries Limited (Reliance Industries) and Reliance Retail Ventures Limited (RRVL) announced that the KKR investment firm would invest ₹5,550 crore into RRVL, a subsidiary of Reliance Industries.

This investment values Reliance Retail at a pre-money equity value of ₹4.21 lakh crore. With the latest investment, KKR will get 1.28% equity stake in RRVL on a fully diluted basis.

Morgan Stanley served as financial advisor to Reliance Retail and Cyril Amarchand Mangaldas, and Davis Polk & Wardwell worked as the legal counsels. Deloitte Touche Tohmatsu India LLP represented as financial advisor to KKR. Shardul Amarchand Mangaldas & Co. and Simpson Thacher & Bartlett LLP served as legal counsel to KKR.

After Jio, this is KKR's second investment in Reliance. Earlier this year the investment firm had invested ₹11,367 crores in Jio Platforms.

"I am pleased to welcome KKR as an investor in Reliance Retail Ventures as we continue our onward march to growing and transforming the Indian Retail ecosystem for the benefit of all Indians. KKR has a proven track record of being a valuable partner to industry-leading franchises and has been committed to India for many years. We look forward to working with KKR's global platform, industry knowledge and operational expertise across our digital services and retail businesses," said Mukesh Ambani, Chairman and Managing Director of Reliance Industries.

Earlier, the US-based equity firm Silver Lake had announced an investment of ₹7,500 crores in Reliance Retail. It also acquired a 1.75% stake in RRVL on a fully diluted basis.