Reliance Retail Ventures Limited (RRVL), the retail arm of Indian conglomerate Reliance Industries Limited (RIL), announced on Wednesday that it has received the entire subscription amount of Rs 2,069.50 crore from global investment powerhouse, KKR & Co. Inc. In a transaction corresponding to this investment, RRVL has allotted 1.71 crore equity shares to KKR.
The company disclosed this major financial development in a filing to the Bombay Stock Exchange (BSE). "We inform you that, post completion of all requisite procedures and receipt of subscription amount, 1,28,25,388 equity shares of Rs.10 each at a price of Rs.1,212.05 per equity share (i.e., at a premium of Rs.1,202.05 per equity share) were allotted to KKR," the filing read.
|Investor||Investment (in Rs. crore)||Equity Shares Allotted|
This deal was first announced in September 2020 when KKR agreed to purchase a 1.28% stake in RRVL, marking the second investment by the private equity giant in a subsidiary of RIL, following a Rs. 11,367 crore investment in Jio Platforms earlier last year.
"This investment underscores KKR’s commitment to India’s consumer and retail sectors, and it will help drive further momentum in the growth of modern retail in India," said Sanjay Nayar, CEO of KKR India, in a statement last year.
The investment by KKR into RRVL is part of RIL's ongoing strategy to attract global investors and pave the way for the retail unit's eventual public listing. Following this transaction, RRVL has raised a total of Rs. 47,265 crore from leading global investors including Silver Lake, KKR, General Atlantic, Mubadala, GIC, TPG and ADIA.
Reliance Retail, a subsidiary of RRVL, operates India's largest and most profitable retail business spanning supermarkets, consumer electronics chain stores, cash and carry wholesale business, fast-fashion outlets and online grocery store JioMart.
The investment has cemented Reliance Retail's position as a dominant player in the Indian retail market, which is expected to reach $1.3 trillion by 2025, according to a report by the Indian Retailing Association.