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GIC-Reliance deal: Singapore investment company to invest Rs 5,512.5 crore in Reliance Retail

GIC-Reliance deal: Singapore investment company to invest Rs 5,512.5 crore in Reliance Retail
Reliance Industries and Reliance Retail Ventures Limited (RRVL) announced on October 2 that Singapore investment company GIC will invest Rs 5,512.5 crore into RRVL, a subsidiary of Reliance Industries. This investment values RRVL at a pre-money equity value of Rs 4.285 lakh crore. GIC's investment will translate into a 1.22 percent equity stake in RRVL on a fully diluted basis.
This is the sixth investment in RRVL in recent weeks.
Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said, “It gives me great pleasure to welcome GIC to the Reliance Retail family. I am delighted that GIC, with its track record of close to four decades of successful long-term value investing across the world, is partnering with Reliance Retail in its mission to transform the Indian retail landscape. GIC’s global network and track record of long-term partnerships will be invaluable to the transformation story of Indian Retail. This investment is a strong endorsement of our strategy and India’s potential.”
Lim Chow Kiat, Chief Executive Officer, GIC, said: “GIC is pleased to partner with Reliance through this new investment, which will enable the company to position Reliance Retail for the strong secular growth in India’s retail market. We believe Reliance Retail will continue to use its extensive supply chain and store networks, as well as strong logistics and data infrastructure, to add value to its customers and shareholders.”
The transaction is subject to regulatory approvals.
Reliance Retail Limited, a subsidiary of RRVL, operates retail business serving close to 640 million footfalls across around 12,000 stores nationwide. Reliance Retail’s vision is to galvanize the Indian retail sector through an inclusive strategy serving millions of customers by empowering millions of farmers and micro, small and medium enterprises (MSMEs) and working closely with global and domestic companies to deliver immense benefits to Indian society, while generating employment for millions of Indians.
Morgan Stanley acted as financial advisor to Reliance Retail and Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal counsels.
Disclosure:
 RIL, the promoter of Reliance Retail, controls Network18, the parent company of CNBCTV18.com.