Singapore’s sovereign wealth fund GIC and US-based private equity firm TPG will invest a total of over $1 billion in Reliance Retail, a unit of the Indian conglomerate Reliance Industries.
GIC will invest $752 million while TPG will make an investment of $250 million in the Reliance Retail Ventures Limited (RRVL).
In a regulatory filing, the Reliance Industries stated that GIC will acquire 1.22 percent equity stake and TPG will secure a 0.41 percent in RRVL. With these investments the retail wing will get a pre-money valuation of $58.5 billion.
The Asian billionaire Mukesh Ambani is repeating his fundraising strategy used earlier for Reliance’s digital wing – Jio. Currently, RRVL has roped in six investors raising a total of about $4.4 billion by selling 7.1% share.
In the past few days the Indian retail giant has revealed its partnership with Abu Dhabi sovereign wealth fund Mubadala, US private equity firmsSilver Lake,General Atlanticand KKR & Co.
Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said, “It gives me great pleasure to welcome GIC to the Reliance Retail family. I am delighted that GIC, with its track record of close to four decades of successful long-term value investing across the world, is partnering with Reliance Retail in its mission to transform the Indian retail landscape.”
James Coulter Co-CEO, TPG
“Regulatory changes, consumer demographics and technological disruption are creating seismic shifts across the entire retail value chain in India. In the midst of this transformation, Reliance Industries has utilized technology and scale to position Reliance Retail as an incredibly strong, well-organized and innovative leader.”
Reliance Retail Limited is the leading business sector in India with over 12,000 stores nationwide. The firm’s aim is to spur the Indian retail with a comprehensive strategy to satisfy consumers by supporting farmers and micro, small and medium enterprises (MSMEs).
GIC
GIC Private Limited, previously known as Government of Singapore Investment Corporation, is a sovereign wealth fund set up in the year 1981. The firm is a global long-term investor with well over $100 billion in assets in over 40 countries.
TPG
Texas Pacific Group (TPG) is a prominent global alternative asset firm established in 1992 which has net worth $83 billion under management across different asset classes, including private equity, growth equity, real estate and public equity.
