Reliance Retail gets full subscription amount of Rs 2,069 crore from KKR

NEW DELHI: Reliance Retail Ventures Ltd, the retail arm of Reliance Industries, has received the full subscription amount of Rs 2,069.50 crore from the global investment firm KKR and has allotted17.1 million equity shares.

Following the share allotment, KKR’s shareholding in Reliance Retail Ventures Ltd (RRVL) has increased to 1.42 per cent, from 1.17 per cent. “Reliance Retail Ventures Ltd received the subscription amount of Rs 2,069.50 crore from Alyssum Asia Holdings II Pte. Ltd. (KKR) and allotted 17,158,752 equity shares to KKR,” Reliance Industries has said in a regulatory filing.

Earlier this month, Reliance Industries had announced KKR’s investment of Rs 2,069.50 crore in RRVL, the holding company of the retail business of billionaire Mukesh Ambani-led group, for a 0.25 per cent additional stake at a valuation of about Rs 8.36 trillion. Founded in 1976, KKR has approximately $ 519 billion in assets under management as of June 30, 2023.

Earlier this month, RIL received Rs 8,278 crore from Qatar Investment Authority (QIA) for around 1 per cent stake in RRVL at a valuation of Rs 8.278 trillion ($ 100 billion). In 2020, RRVL had raised Rs 47,265 crore (around $ 6.4 billion) from global private equity funds for a 10.09 per cent stake, valuing the company at more than Rs 4.2 trillion. This was the largest fundraising exercise in the sector at that time.

Addressing shareholders, Mukesh Ambani had said if RRVL was listed on stock exchanges, then based on the current valuation, it would be among the top four listed entities in the country. In its latest annual report, RIL said Reliance Retail had achieved a significant milestone of crossing a billion transactions and its registered user base has grown to 249 million.

It operates a network of over 18,500 stores and digital commerce platforms across grocery, consumer electronics, fashion & lifestyle, and pharma consumption baskets.