TPG will invest ₹ 1,837.5 crore into Reliance Retail

Rajesh Kurup Mumbai | Updated on October 03, 2020 Published on October 03, 2020

This is the second investment by TPG in a subsidiary of Reliance Industries

Reliance Retail Ventures Ltd (RRVL) has raised Rs 1,837.5 crore from global investment firm TPG in lieu of 0.41 per cent stake.

This investment values RRVL at a pre-money equity value of Rs 4.285 lakh crore.

This marks the second investment by TPG in a subsidiary of Reliance Industries, following a Rs 4,546.8 crore investment in Jio Platforms earlier this year.

Reliance Retail Ltd, a subsidiary of RRVL, operates India's close to 640 million footfalls across its 12,000 stores nationwide.

TPG is a leading global alternative asset firm with more than $83 billion of assets under management across a wide range of asset classes, including private equity, growth equity, real estate and public equity.

“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,” RIL Chairman and Managing Director Mukesh Ambani 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-organised, 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,” Jim Coulter, Co-CEO at TPG said.

TPG is making the investment from its TPG Capital Asia fund.

“We are delighted to welcome TPG to the Reliance Retail family in our journey of revolutionising 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,” Reliance Retail Director Isha Ambani said.

Morgan Stanley was the financial advisor to Reliance Retail and Cyril Amarchand Mangaldas and Davis Polk & Wardwell were legal counsels. Deloitte Touche Tohmatsu India was the advisor to TPG and Shardul Amarchand Mangaldas & Co. were legal counsel to TPG.

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Published on October 03, 2020
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