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KKR Set to Invest Rs 2,000 Crore and Raise Stake to 1.42% in Reliance Retail

The current investment by KKR will increase its existing stake in the company by 0.25%.

Reliance Retail Ventures Ltd (RRVL) on 11 September announced that global investment firm KKR is set to invest Rs 2,069.50 crore in the company through an affiliate.

The current investment by KKR will increase its existing stake in the company by 0.25% on a fully diluted basis.

Initially, KKR had invested Rs 5,550 crore in the company in 2020. With the recent investment, the combined stake of KKR in Reliance Retail Venture Ltd will increase to 1.42%.

This investment places the company’s pre-money equity value at Rs 8.361 lakh crore, making it among India’s top four companies by equity value.

The company said KKR’s investment is made through its Asian Fund IV, which is subject to regulatory and other customary approvals.

In August, the company secured a Rs 8,278 crore investment from Qatar Investment Authority for a 0.99% stake on a fully diluted basis.

Isha Mukesh Ambani, director at RRVL, said, “We look forward to continued engagement with KKR and to benefit from its global platform, industry knowledge, and operational expertise in our journey towards driving transformation in the Indian retail sector.”

Joe Bae, Co-CEO KKR, said, “Throughout our investment period in Reliance Retail, we have been impressed by the company’s vision and extensive work to empower retailers across India through digitalization, as well as by its resilience and performance in spite of the pandemic and other disruptions. We look forward to continuing to work alongside the Reliance Retail team to support the company’s mission to build a more inclusive Indian retail economy.”

Reliance Retail Ventures Ltd is a retail arm of Reliance Industries and operates India’s largest and most profitable retail business. The company serves 26.7 crore customers and has over 18,500 stores and digital commerce platforms across consumer electronics, grocery, pharma consumption, and fashion & lifestyle.

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