RIL share price rises on TPG, GIC investments in Reliance Retail

In another stake sale announcement, Singapore's sovereign wealth fund GIC will invest Rs 5,512.5 crore into RRVL, valuing RRVL at a pre-money equity value of Rs 4.285 lakh crore.

This investment will translate into a 1.22 percent equity stake in RRVL on a fully diluted basis.

Earlier, Mubadala Investment Company (Mubadala), the Abu Dhabi-based sovereign investor, had said it will invest Rs 6,247.5 crore (AED 3.1 billion) into RRVL.

The investment valued Reliance Retail at a pre-money equity value of Rs 4.285 lakh crore and translates into a 1.40 percent equity stake in RRVL on a fully diluted basis.

For Mubadala, too, this is the second investment in a Reliance Industries subsidiary after a $1.2-billion investment in Jio Platforms announced earlier this year.

On September 30, global private equity firm General Atlantic picked up a 0.84 percent stake in the company for Rs 3,675 crore.

Also, US PE investor Silver Lake made a second investment of Rs 1,875 crore, taking its total fund infusion in Reliance Retail to Rs 9,375 crore for a 2.13 percent stake.

"Over the last few days Reliance Industries has announced a slew of investments by private equity players in Reliance Retail Ventures Mubadala, GIC and TPG have announced investments of Rs 6,247.5 crore, Rs 5,512.5 crore and Rs 1,837.5 crore respectively since the beginning of October," said Jyoti Roy - DVP- Equity Strategist, Angel Broking.

"We maintain our positive view on Reliance industries and expect that the digital and the retail business will be the future growth drivers for the company. We continue to maintain our buy rating on reliance Industries with a target of Rs 2,543," he added.

At 9:17 hours, Reliance Industries was quoting at Rs 2,339.10, up Rs 14.05, or 0.63 percent on the BSE.

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