Just months after investing in Mukesh Ambani's Reliance Jio, Silicon Valley-based private equity group Silver Lake is in talks to invest about Rs 7,500 crore ($1 billion) in Reliance Retail at a valuation of roughly Rs 4.3 lakh crore.
The negotiations come as Reliance Retail, controlled by Reliance Industries, is aiming to raise $5.7 billion by selling about 10 per cent in new shares, the Financial Times reported citing people briefed about the matter. Reliance Retail, which is in talks with multiple investors, looks to sell around 1.7-1.8 per cent stake to Silver Lake.
Earlier this year, Mukesh Ambani had raised $20 billion of investment for the digital business Jio Platforms from 13 global investors. This includes about Rs 10,202 crore investment by Silver Lake in this entity. It was the first American PE group to invest in Jio.
The FT story said investors in Jio Platforms had been given the opportunity to invest in Reliance Retail. The move assumes significance as it signals Ambani's diversification dreams in one of the largest consumer markets in the world.
Founded in 2006, Reliance Retail is India’s largest retail chain operating stores across formats and recently acquired the retail assets of Future Group. From groceries to electronics, the retail chain has almost everything in its inventories. Last year, it bought British toy chain Hamleys, and it also runs the India outlets of global brands including jeweller Tiffany. This year, Reliance launched an e-commerce venture, JioMart, which sought to bridge India’s enormous informal retail market by pairing consumers with local shops to deliver groceries and other essentials.
