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KKR to invest in Reliance Retail: Key things to know about the deal

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Reliance Industries (RIL) on Wednesday announced that American buyout firm KKR & Co will invest Rs 5,500 crore in Reliance Retail Ventures (RRVL).

KKR to invest in Reliance Retail: Key things to know about the deal
Reliance Industries (RIL) on Wednesday announced that American buyout firm KKR & Co will invest Rs 5,550 crore in Reliance Retail Ventures (RRVL). This is the second deal in 2 weeks stitched up by the retail unit of Reliance Industries.
Silver Lake, earlier in the month, announced that it will invest Rs 7,500 crore for a 1.75 percent equity stake in the subsidiary. Both KKR and Silver Lake have invested in RIL subsidiary Jio Platforms as well.
Here are the key things to know about the latest deal:
- KKR’s investment will translate into a 1.28 percent equity stake in RRVL on a fully diluted basis.
- The investment values Reliance Retail at a pre-money equity value of Rs 4.21 lakh crore.
- This is the second investment by KKR in a Reliance arm after investment in Jio Platforms earlier this year.
- KKR had invested Rs 11,367 crore ($1.5 billion) in Jio Platforms for a 2.32 percent stake in the company.
- KKR, headquartered in New York, was founded in 1976 by Jerome Kohlberg Jr, Henry Kravis and George Roberts.
- KKR had $222 billion in assets under management as of June 30, 2020.
- Founded in 2006, Reliance Retail operates India's largest, fastest-growing and most profitable retail business.
- It serves close to 640 million footfalls across its 12,000-odd stores nationwide in 7000 cities.
- Last month, Reliance Retail had announced the acquisition of the retail and logistics businesses of Kishore Biyani’s Future Group in a $3.38 billion deal, including debt.
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