Mukesh Ambani-led Reliance Industries announced on Thursday that Reliance Retail Ventures has completed the current phase fund raising. RRVL has received cumulative subscription amount of Rs 47,265 crore from nine different investors and has allotted 69,27,81,234 equity shares to them, divesting 10.09% in the company.
Reliance Retail Ventures said in a statement that this is the largest fund raising exercise in the retail sector completed within 2 months and that all the investments have been completed, with receipt of funds and issue of shares.
The company raised Rs 7,500 crore from Silver Lake Partners in September for a 1.6% stake, followed by another round of investment by Silver Lake and co-investors of Rs 1,875 crore for a 0.4% stake. Reliance Retail then raised Rs 5,550 crore from KKR for a 1.19% stake, Rs 6,247 crore from Mubadala for a 1.33% stake, Rs 5,512 crore from the Abu Dhabi Investment Authority (ADIA) for a 1.18% and the same amount from GIC. It also raised Rs 1,837 crore for a 0.39% stake from TPG, Rs 3,675 crore for 0.78% stake from General Atlantic and Rs 9,555 crore from Saudi Arabia’s sovereign wealth fund Public Investment Fund for a 2.04% stake.
Isha Mukesh Ambani, Director of Reliance Retail Ventures Limited, said, “We are proud to have such strong and reputed partners in RRVL. We feel honoured by the phenomenal interest shown by investors in our business 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.”
This comes after its digital arm Jio Platforms raised Rs 1.52 lakh crore from 13 different investors earlier this year.
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.