Reliance Industries (RIL) share price gained 3 percent in early trade on September 23 after the announcement global investment firm KKR will invest Rs 5,550 crore in the company's retail subsidiary.
American buyout firm KKR & Co will invest Rs 5,550 crore in the company's subsidiary Reliance Retail Ventures in exchange for a 1.28 percent stake, the second deal stitched up by the Reliance Industries Ltd (RIL) unit in as many weeks.
Also read: Silver Lake to invest in Reliance Retail, buys 1.75% stake for Rs 7,500 crore
This investment values Reliance Retail at a pre-money equity value of Rs 4.21 lakh crore.
Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said, “I am pleased to welcome KKR as an investor in Reliance Retail Ventures as we continue our onward march to growing and transforming the Indian Retail ecosystem for the benefit of all Indians.”
"The second stake sale in the retail business is credit positive as it signals that the company continues to further improve its already strong capital structure," said Sweta Patodia, Analyst, Corporate Finance Group, Moody’s Investors Service.
"The stake sale also reinforces the valuation set by the previous deal with Silver Lake and will allow the company to further monetize its retail business, if it decides to do so," she added.
At 09:16 hrs, Reliance Industries was quoting at Rs 2,268.00, up Rs 56.85, or 2.57 percent on the BSE.
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