The share price of Reliance Industries Ltd (RIL) gained over 1 percent after the company announced that private equity firm Silver Lake will invest Rs 7,500 crore for 1.75 percent equity stake in its subsidiary Reliance Retail Ventures Ltd (RRVL). This investment values RRVL at a pre-money equity value of Rs 4.21 lakh crore.
RIL stock jumped as much as 1.52 percent to an intraday high of Rs 2,139.10 on the BSE. At 9:45 am, the shares were trading 0.66 percent higher at Rs 2,120.95 apiece.
Silver Lake Partners is a specialist firm focused on technology companies and has invested in global tech majors like Twitter, Airbnb, Alibaba, Dell Technologies, ANT Financials, Alphabet’s Waymo, and Verily amongst others.
Read here: Private equity firm Silver Lake to invest Rs 7500 crore in Reliance Retail for 1.75% stake
This is the second large investment by Silver Lake in a Reliance Industries subsidiary after investing $1.35 billion or Rs 10,200 crore in Jio Platforms for a 2.08 percent stake in two tranches earlier this year.
With this deal, Jio Platforms and Reliance Retail now account for over Rs 9 lakh crore of RIL's valuation.
BofA Securities earlier said an omnichannel approach on commerce would help RIL sell its grocery, apparel and electronics items to a wider audience base. By working with the Kiranas, RIL would likely increase its B2B sales as well, it said in a report.
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First Published: IST