Reliance Retail Ventures gets Rs 2,000 crore from KKR
KKR is investing another ₹2,069.5 crore through an affiliate in Reliance Retail Ventures (RRVL), holding company for the retail businesses of Reliance Industries (RIL).
KKR's follow-on investment will translate into an additional equity stake of 0.25% in RRVL, according to a press release issued on Monday, which added that this takes the private equity giant's holding to 1.42%.
This round of fundraising has increased RRVL's valuation to around ₹8.36 lakh crore, from ₹8.28 lakh crore, when Qatar Investment Authority invested ₹8,278 crore less than three weeks ago.
RIL said this puts Reliance Retail Ventures on the list of the country's top four companies by equity value.
ET on August 25 reported that Reliance Industries is likely to sell a fresh round of 8-10% in RRVL to fund expansion, retire debt and prepare for the unit's initial public offering, which would take total stake sold to 19-21%.
Global interest
The stake sale is crucial because at the current valuation, RRVL's IPO size will be too large for the current liquidity to absorb.
At a recent annual general meeting, Reliance Industries chairman and managing director Mukesh Ambani said several global investors had shown keen interest in the conglomerate's retail business.
The latest investment by KKR comes primarily from its Asian Fund IV. In 2020, KKR invested Rs 5,550 crore in Reliance Retail Ventures.
