Stocks

Reliance Industries shares gain as Silver Lake buys into Reliance Retail

PTI New Delhi | Updated on September 09, 2020

RIL shares gained 1.5 per cent after US private equity firm Silver Lake Partners picked up 1.75 per cent stake in the retail arm of the company for Rs 7,500 crore.   -  REUTERS

Shares of Reliance Industries gained 1.5 per cent in early trade on the bourses after US private equity firm Silver Lake Partners picked up 1.75 per cent stake in the retail arm of the company for Rs 7,500 crore.

The stock jumped 1.52 per cent to Rs 2,139.10 on the BSE. At the NSE, it rose by 1.50 per cent to Rs 2,138.75.

“Reliance Industries Ltd and Reliance Retail Ventures Ltd (RRVL) announced today that Silver Lake will invest Rs 7,500 crore into RRVL, a subsidiary of Reliance Industries,” the statement said.

Also read: Reliance Retail Ventures raises ₹7,500 crore from Silver Lake

This investment values RRVL at a pre-money equity value of Rs 4.21 lakh crore. Silver Lake’s investment will translate into a 1.75 per cent equity stake in RRVL on a fully diluted basis.

This marks the second billion-dollar investment by Silver Lake in a Reliance Industries subsidiary after the $1.35-billion investment in Jio Platforms announced earlier this year.

“Reliance Retail Ltd, a subsidiary of RRVL, operates India’s largest, fastest growing and most profitable retail business serving close to 640 million footfalls across its about 12,000 stores nationwide,” the statement said.

Also read: KKR in advanced talks for $1-billion Reliance Retail stake

 

Published on September 09, 2020

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