Reliance Retail Ventures raises Rs47,265 cr selling nearly 11% stake
20 Nov 2020
Reliance Industries Limited (RIL) and Reliance Retail Ventures Ltd (RRVL) on Thursday announced the completion of raising Rs47,265 crore for 10.09 per cent stake in the company, in what is considered the largest fund raising in the sector. The whole exercise, including receipt of funds and issue of shares, were completed within two months, Reliance Industries stated in a media release.
RRVL has received cumulative subscription amount of Rs47,265 crore from financial investors and allotted 69,27,81,234 equity shares to them. The respective equity stakes acquired by global investors in RRVL, on a fully diluted basis, include:
Sale of 2 per cent stake in two tranches to Silver Lake Partners for a total of Rs9,375 crore;
Sale of 1.19 per cent stake to KKR for Rs5,550;
Sale of 1.19 stake to Mubadala for Rs6,247 crore;
Sale of 1.18 per cent stake to ADIA for Rs5,512 crore
Sale of 1.18 per cent stake to GIC for Rs5,512 crore;
Sale of 0.39 per cent stake to TPG for Rs1,837.50 crore;
Sale of 0.78 per cent stake to General Atlantic for Rs3,675 crore; and
Sale of 2.04 per cent stake to PIF for Rs9,555 crore.
“We are proud to have such strong and reputed partners in RRVL. We feel honoured by the phenomenal interest shown by investors and look forward to working with our partners to benefit from their experience and global connectivity. With our focus on New Commerce, we are committed to playing a transformational role in the Indian retail sector by empowering millions of merchants and micro, small and medium enterprises.” Isha Mukesh Ambani, director of Reliance Retail Ventures Limited, said.
Morgan Stanley acted as financial advisor to RRVL and Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal counsels. BofA Securities, acting as additional financial advisor, advised on the process as well as transaction structuring.
Reliance Retail Ventures Limited is a subsidiary of Reliance Industries Limited, and holding company of all the retail companies under the RIL Group. RRVL reported a consolidated turnover of Rs162,936 crore ($21.7 billion) and net profit of Rs5,448 crore ($726.4 million) for the year ended 31 March 2020.
Reliance Retail topped the list of ‘50 fastest-growing retailers globally between FY2013 and FY2018 in the Deloitte's Global Powers of Retailing 2020 index. Reliance Retail secured the 56th spot this year against the 94th rank the previous year and is the only Indian company to be featured in this list says the company.