KKR buys additional stake in Reliance Retail Ventures for Rs 2,069.50 crore

Private Equity giant KKR buys an additional stake in Reliance Retail Ventures worth Rs 2,069.50 crore. 

Joe Bae, co-CEO of KKR words

“We are pleased to extend our relationship with Reliance Retail. Throughout our investment period, we have been impressed by the company’s vision and extensive work to empower retailers through digitalization, as well as by its resilience and performance in spite of the pandemic” 

Justification

• KKR global investment firm invested an additional Rs 2,069.50 crore in Reliance Industries Ltd’s (RIL) retail arm, Reliance Retail Ventures Ltd (RRLV), acquiring 0.25% stake in RRVL.

• In 2020, KKR had invested Rs 5,550 crore in RRVL at a valuation of Rs 47,265 Cr, the additional investment will make KKR’s total holdings in RRVL up to 1.42% as per RIL.

• Earlier, Qatar Investment Authority invested Rs 8,278 crore in RRVL for 1% stake, at RRVL’s valuation of 8.28 lakh Cr.

• On 11/03/2023 RIL with a 1.04% up gain over its previous close, closed at Rs 2,474.40. 

• The group & its subsidiaries & associates operates with 18k+ outlets, with over 27 Cr loyalty customers & has partnership with brands like Jimmy Choo, Pret A Manger etc.