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5 things to know about KKR-Reliance Retail deal

This investment from KKR in Reliance Retail comes weeks after another private equity giant Silver Lake Partners had picked up a 1.75 percent stake for Rs 7,500 crore in the RIL unit.

September 23, 2020 / 11:56 AM IST

Days after private equity giant Silver Lake Partners said that it will invest Rs 7,500 crore in Reliance Retail, American buyout firm KKR & Co has said that it will invest Rs 5,550 crore in Reliance Retail.

RIL, an oil-to-telecom conglomerate, is expanding its retail business through acquisitions and lining up a scrum of global investors to take on rivals such as Amazon India and Walmart-owned Flipkart in India’s huge market.

Here are five things to know about the deal: 

1. The investment values Reliance Retail at a pre-money equity value of Rs 4.21 lakh crore, RIL said in an exchange filing on September 23.

2.  KKR is investing Rs 5,550 crore in Reliance Retail in exchange for a 1.28 percent stake.

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3. This is the second investment that has been attracted by Reliance Retail in two weeks, earlier Private equity giant Silver Lake Partners  picked up a 1.75 percent stake for Rs 7,500 crore.

4. This is the second investment by KKR in a Reliance enterprise. In May, 2020, KKR said it will invest Rs 11,367 crore in Jio Platforms, the digital services platform of RIL.

5. This deal will bolster Reliance Retail's aim of expanding and getting hold of a larger chunk in India's retail space and it follows the announcement in August to buy the retail and logistics businesses of Kishore Biyani’s Future Group in a deal valued at $3.38 billion, including debt.

Disclaimer: Reliance Industries Ltd., which also owns Jio, is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.



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first published: Sep 23, 2020 08:19 am
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