KKR’s ₹2,069.50 crore investment in Reliance Retail to increase stake to 1.42%

RRVL now commands a pre-money equity value of ₹8.361 lakh crore

On Monday, Reliance Retail Ventures Limited (RRVL) announced a substantial infusion of capital from the globally renowned investment firm, KKR (Kohlberg Kravis Roberts). The financial commitment from KKR amounted to an impressive ₹2,069.50 crore, channeled through an affiliated entity. This investment is set to increase KKR’s stake in RRVL to a reported 1.42% from 1.17% and place it among the top four companies in India – in terms of equity value.

The valuation associated with this transaction is nothing short of staggering, as RRVL now commands a pre-money equity value of ₹8.361 lakh crore. KKR’s follow-on investment will result in an additional equity stake of 0.25% in RRVL when considering the fully diluted basis. This incremental stake, when combined with KKR’s initial investment of ₹5,550 crore in RRVL back in 2020, builds up to KKR’s total equity stake in RRVL reaching the substantial 1.42% mark.

It is noteworthy that RRVL had previously conducted a remarkable fund-raising round in 2020, amassing an amount of ₹47,265 crore, which was achieved at a pre-equity valuation of ₹4.21 lakh crore. Furthermore, it’s worth highlighting that KKR is not merely an investor in RRVL but also holds a significant stake in Jio Platforms Limited, which is another subsidiary of Reliance Industries Limited (RIL).

As per a report, Isha Mukesh Ambani, the Director of RRVL, said, “We are pleased to receive continued support from KKR as an investor in Reliance Retail Ventures Limited. We highly value our deepening partnership with KKR, and their latest investment in RRVL after their previous investment further reinforces their strong belief in RRVL’s vision and capabilities. We look forward to continued engagement with KKR and to benefit from their global platform, industry knowledge, and operational expertise, in our journey towards driving transformation of the Indian retail sector.”