KKR to invest Rs 2,069.50 crore into Reliance Retail Ventures; details inside

Global investment firm KKR, through an affiliate, will invest Rs 2,069.50 crore into Reliance Retail Ventures (RRVL), a subsidiary of Reliance Industries. This investment values RRVL at a pre-money equity value of Rs 8.361 lakh crore, which makes it among the top four companies by equity value in the country.

KKR’s follow-on investment will translate into an additional equity stake of 0.25% in RRVL on a fully diluted basis. This, combined with its stake from its investment of Rs 5,550 crore in RRVL in 2020, will take its total equity stake in RRVL to 1.42% on a fully diluted basis. The previous fund-raise round by RRVL in 2020 from various global investors of an aggregate amount of Rs 47,265 crore was done at a pre-money equity value of Rs 4.21 lakh crore.

RRVL’s vision is to galvanise the Indian retail sector through an inclusive strategy serving millions of customers, empowering micro, small and medium enterprises (MSMEs) and working closely with global and domestic companies as a preferred partner, to deliver immense benefits to Indian society, while protecting and generating employment for millions of Indians. RRVL, through its New Commerce business, has digitized more than 3 million small and unorganised merchants. This will enable these merchants to use technology tools and an efficient supply chain infrastructure to deliver a superior value proposition to their own customers.

Reliance Industries is India’s largest private-sector company. The company’s activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and 4G digital services.

On Tuesday, the stock opened at Rs 2489.70 and touched a high and low of Rs 2489.70 and Rs 2441.15, respectively. The BSE group ‘A’ stock of face value of Rs 10 has touched a 52-week high and low of Rs 2,635.17 and Rs 2,012.14, respectively.

Last one week high and low of the scrip stood at Rs 2489.70 and Rs 2411.40, respectively. The current market cap of the company is Rs 16,57,779.93 crore. The promoters holding in the company stood at 50.39%, while Institutions and Non-Institutions held 38.86% and 10.76%, respectively.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.