TPG-Reliance Retail deal: Global investment company to inject Rs 1,837.5 crore for 0.41% of RIL unit

Global investment firm TPG will inject Rs 1,837.5 crore in the retail division of Reliance Industries (RIL) for a 0.41 percent stake, marking the seventh investment in recent weeks as global investor interest in the company ascends by the day.

The latest investment values Reliance Retail at a pre-money equity value of Rs 4.285 lakh crore, RIL said in a late night statement (October 3), moments after it announced that Singapore investment company GIC will invest Rs 5,512.5 crore in the company.

TPG is making the investment from its TPG Capital Asia fund.

This marks the second investment by TPG in a subsidiary of Reliance Industries, after a Rs 4,546.8 crore investment in Jio Platforms announced earlier this year.

Jim Coulter, Co-CEO, TPG, said, “Reliance Industries has utilised technology and scale to position Reliance Retail as an incredibly strong, well-organized, and innovative leader. We are excited to join with them as they seek to create a more inclusive retail industry that allows kiranas and Indian consumers to benefit from the connectivity, efficiency, and accessibility of the Reliance Retail omnichannel platform.”

On October 2, Singapore investment company GIC said it will invest Rs 5,512.5 crore in exchange for 1.22 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 RIL.

This investment —  with Silver Lake's co-investors and General Atlantic, the seventh 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.

TPG is a leading global alternative asset firm founded in 1992 with more than $83 billion of assets under management across a wide range of asset classes, including private equity, growth equity, real estate and public equity.

Over TPG’s nearly 30-year history, the firm has built an ecosystem made up of hundreds of portfolio companies and a value-added network of professionals, executives, and advisors around the world. By offering institutional support and global resources, TPG enables these companies to reach their full potential and unlock greater possibilities.

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.