Silver lake co-investors buy additional stake in Reliance’s retail arm for Rs 1,875 crore
Silver Lake, whose portfolio includes stakes in Airbnb and Twitter Inc, has previously invested in Reliance’s digital business.
Reliance Retail Ventures on Wednesday said that United States private equity firm Silver Lake co-investors will be investing an additional Rs 1,875 crore into the retail arm of Reliance Industries.
The firm, which made the announcement in a regulatory filing, said the new investment will bring the aggregate net by Silver Lake and its co-investors in Reliance Retail Ventures to Rs 9,375 crore, translating into 2.13% equity stake on a fully diluted basis.
The investment puts the valuation of Reliance Retail at Rs 4.285 lakh crore, the Reliance Industries said.
“Silver Lake and its co-investors are valued partners on our journey to transform Indian Retail for the benefit of all Indians,” Reliance Industries chairperson and Managing Director Mukesh Ambani said. “We are pleased to have their confidence and support, as well as the benefit of their leadership in global technology investing and their valued network of relationships for the Retail revolution in India. Silver Lake’s additional investment is a strong endorsement of the tremendous potential of Indian Retail and the capabilities of Reliance Retail.”
Reliance Industries, which has managed to get a series of investment despite the coronavirus pandemic, said the transaction is subject to regulatory and other customary approvals.
Silver Lake, whose portfolio includes stakes in short-term home rental company Airbnb and social media company Twitter Inc, has previously invested in Reliance’s digital business. On September 9, Silver Lake had announced that it will invest Rs 7,500 crore in the retail arm of Reliance Industries for a 1.75% stake. This came after it picked up a 2.08% stake for $1.35 billion investment in Jio Platforms earlier this year.