Reliance Retail (RRVL), the retail arm of Reliance Industries, has successfully received the full subscription amount of Rs 2,069.50 crore from the global investment firm KKR and has allotted 1.71 crore equity shares. Following this share allotment, KKR’s shareholding in RRVL has increased to 1.42 per cent, up from the previous 1.17 per cent.
In a regulatory filing on Saturday evening, Reliance Industries announced, “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 had disclosed KKR’s investment of Rs 2,069.50 crore in RRVL, the holding company overseeing the retail business of the Mukesh Ambani-led group. This investment represented a 0.25 per cent additional stake in RRVL and was valued at approximately Rs 8.36 lakh crore.
KKR, founded in 1976, manages assets totaling around USD 519 billion as of 30 June 2023.
Additionally, in the same month, Reliance Industries received Rs 8,278 crore from Qatar Investment Authority (QIA) in exchange for approximately 1 per cent stake in RRVL. This transaction valued RRVL at Rs 8.278 lakh crore (USD 100 billion).
In 2020, RRVL had conducted a substantial fundraising effort by securing Rs 47,265 crore (approximately USD 6.4 billion) from global private equity funds. This investment represented a 10.09 per cent stake in RRVL, valuing the company at over Rs 4.2 lakh crore.
RRVL is actively expanding its business through acquisitions and securing franchise rights for leading international brands in India. It is also investing in scaling up its infrastructure and recently acquired the India business of German retail major Metro Cash and Carry.
During the annual general meeting (AGM) of Reliance Industries held last month, Chairman Mukesh Ambani stated that several prominent global strategic and financial investors have expressed strong interest in Reliance Retail. He further mentioned that if RRVL were to be listed on stock exchanges, it would rank among the top four listed entities in the country based on its current valuation.
Reliance Retail has achieved remarkable growth in less than three years, with its valuation doubling. The pace of this value creation is unprecedented globally, according to Ambani.
In its most recent annual report, Reliance Industries reported that Reliance Retail had achieved a significant milestone by surpassing a billion transactions, and its registered user base had expanded to 249 million. The company operates a network of over 18,500 stores and digital commerce platforms covering grocery, consumer electronics, fashion & lifestyle, and pharmaceutical consumption baskets.
In the fiscal year 2023, Reliance Retail’s digital commerce and new commerce segments contributed 18 per cent of its revenue, totaling Rs 2.60 lakh crore.
