On Thursday, Reliance Industries announced that they have finished the current phase of fundraising. Reliance Retails Ventures Limited (RRVL) has gathered a total of Rs. 47,265 crores from different foreign investors. This is in exchange for a 10.09 percent stake in RRVL. A total of 69,27,81,234 equity shares are allotted to them.
In a statement, the company said, “RRVL has received cumulative subscription amount of Rs 47,265 crore from the following financial partners and allotted 69.27 crore equity shares to them.”
Since September, a large number of global funds from the Middle East to the United States have started divesting into the company. These include private equity firms Silver Lake Partners, KKR, GIC, TPG, and General Atlantic, as well as sovereign wealth funds Mubadala, ADIA, and PIF. Here are the individual stakes:
- Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF) bought 2.04 percent stakes for Rs. 9,555 crores.
- Silver Lake Partners bought 2 percent stakes in two stages (1.6 then 0.4) for a total of Rs. 9,375 crores.
- KKR bought 1.19 percent stakes for Rs. 5,550 crores.
- GIC and ADIA (Abu Dhabi Investment Authority) each bought 1.18 percent stakes for Rs. 5,512 crores.
- UAE’s Mubadala bought 1.33 percent stakes for Rs. 6,247 crores.
- General Atlantic bought 0.78 percent stakes for Rs. 3,675 crores.
- TPG bought 0.39 percent stakes for Rs. 1,837 crores.
This is our biggest fundraising exercise: RRVL
In their statement, RRVL said that this is the biggest fundraising exercise that they have completed in 2 months. They also stated that they have completed all the investments with proper fund receipts and issue of shares.
This new funding also comes weeks after Reliance acquired the retail line of Future Group. Reliance also acquired Future’s wholesale, logistics, and warehouse businesses for Rs. 24,713 crores. Amazon has, however, stood against this deal.
Before that, Reliance also raised Rs. 1.52 lakh crores for their digital service company, Jio Platforms. The investors included big names such as Facebook, Google, and Intel.
RRVL’s director, Isha Mukesh Ambani said that they were proud to have such strong and reputed partners in RRVL. She said, “We feel honored 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.”
She also added that their company is looking forward to working with their investors after they have displayed “phenomenal interest” in them.
Morgan Stanley acted as financial advisor to RRVL. Cyril Amarchand Mangaldas and David Polk & Wardwell acted as their legal counsels. BofA Securities acted as their financial advisor, who provided guidance and advice on the process as well as transaction structuring.