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GIC-Reliance Retail deal: Singapore investment company to pump Rs 5,512.5 crore for 1.22% of RIL unit

Deals in recent weeks underline growing interest from global investors in the retail division of Mukesh Ambani-controlled Reliance Industries
Oct 3, 2020 / 12:24 AM IST

Singapore investment company GIC will invest Rs 5,512.5 crore in the retail unit of Reliance Industries (RIL), joining the rush of global investors buying stakes in the Indian company.

This latest investment — the sixth in recent weeks — in exchange for 1.22 percent stake values Reliance Retail Ventures (RRVL) at a pre-money equity value of Rs 4.285 lakh crore, Mukesh Ambani-controlled RIL said in a late-night statement on October 2.

Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said, “GIC’s global network and track record of long-term partnerships will be invaluable to the transformation story of Indian retail. This investment is a strong endorsement of our strategy and India’s potential.”

Lim Chow Kiat, CEO, GIC, said, “We believe Reliance Retail will continue to use its extensive supply chain and store networks, as well as strong logistics and data infrastructure, to add value to its customers and shareholders.”

Reliance Retail has so far attracted investments worth Rs 30,360 crore in exchange for a combined 6.87 percent stake.

On October 1, Abu Dhabi state fund Mubadala Investment Co said it will invest Rs 6,247.5 crore to secure 1.4 percent in the retail unit of Reliance Industries (RIL).

This investment —  with Silver Lake's co-investors and General Atlantic, the sixth in three weeks — too valued Reliance Retail at a pre-money equity value of Rs 4.285 lakh crore.

Reliance Retail operates India's largest, fastest growing and most profitable retail business serving close to 640 million footfalls across its nearly 12,000 stores nationwide.

GIC is a leading global investment firm established in 1981 to manage Singapore’s foreign reserves, said the RIL statement. A disciplined long-term value investor, GIC is uniquely positioned for investments across a wide range of asset classes, including equities, fixed income, private equity, real estate and infrastructure, it said.

GIC has investments in over 40 countries and has been investing in emerging markets for more than two decades. Headquartered in Singapore, it employs over 1,700 people across 10 offices in key financial cities worldwide.

The transaction is subject to regulatory and other customary approvals.

Morgan Stanley acted as financial advisor to Reliance Retail and Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal counsels.

Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.
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